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Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2020 2019 Cash $99,400 $47.900 Accounts receivable 91,200 33,600 Inventory

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Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2020 2019 Cash $99,400 $47.900 Accounts receivable 91,200 33,600 Inventory 111,900 102,900 Prepaid expenses 29.900 25,300 Investments 140,400 114,800 Equipment 269,300 241,900 Accumulated depreciation-equipment (46,500) (52,700) Total $695,600 $513,700 Liabilities and Stockholders' Equity Accounts payable $112.000 $68,000 Accrued expenses payable 16,300 17,000 Bonds payable 119,000 149,200 Common stock 221,000 174,700 Retained earnings 227,300 104,800 Total $695,600 $513,700 CHENG INC. Income Statement For the Year Ended December 31, 2020 CHENG INC. Income Statement For the Year Ended December 31, 2020 Sales revenue $392,000 Less: Cost of goods sold $135.900 Operating expenses, excluding depreciation 12,900 Depreciation expense 38,500 Income tax expense 26,700 Interest expense 4,000 Loss on disposal of plant assets 6,800 224,800 Net income $167,200 Additional information: Additional information 1. 2. New equipment costing $80,200 was purchased for cash during the year. Old equipment having an original cost of $2,800 was sold for $1,300 cash. Bonds matured and were paid off at face value for cash A cash dividend of $44,700 was declared and paid during the year, 3. 4 Further analysis reveals that accounts payable pertain to merchandise creditors. Prepare a statement of cash flows for Cheng Inc. using the direct method. (Show amounts that decrease cash flow with elther a-signes -15,000 or in parenthesis eg. (15,000).) Further analysis reveals that accounts payable pertain to merchandise creditors. Prepare a statement of cash flows for Cheng Inc, using the direct method. (Show amounts that decrease cash flow with elthe -15,000 or in parenthesis eg. (15,000).) CHENG INC. Statement of Cash Flows cash payments:

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