Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2020 Cash $100,800 Accounts receivable 92,000 Inventory 111,200 Prepaid expenses 29,500 Investments 140,500 Equipment 270.900 Accumulated depreciation equipment (46,300 Total $698,600 2019 $48,600 32,100 102,700 25,600 113,300 241,000 (52,700) $510,600 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock $111,100 16,400 117,500 220.500 $67.200 17.100 149.600 175.000 t LUI SILN 13, Retained earnings Total ZIJU 233,100 $698,600 101.700 $510,600 $392,400 CHENG INC. Income Statement For the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold $134 800 Operating expenses, excluding depreciation 11,000 Depreciation expense 36,500 Income tax expense 26,400 Interest expense 5,000 Loss on disposal of plant assets 6,700 Net Income 220,400 $172.000 Additional information 1 2 New equipment costing $80,700 was purchased for cash during the year. Old equipment having an original cost of $50,000 was sold for $1.200 36,500 26,400 Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets Net income 5,000 6,700 220,400 $172,000 Additional information: 1 2 New equipment costing $80,700 was purchased for cash during the year. Old equipment having an original cost of $50,800 was sold for $1.200 cash. Bonds matured and were paid off at face value for cash A cash dividend of $40,600 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 either a signes -15,000 or in parenthesis es (15,0001) CHENG INC. Statement of Cash Flows