Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2020 Cash $103,600 Accounts receivable 91,000 Inventory 111,000 Prepaid expenses 29,100 Investments 139,700 Equipment 265,300 Accumulated depreciation equipment (47,800) Total $691,900 2019 $48,100 32,900 102,500 25,500 113,100 242,600 (52,300) $512,400 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $111,600 16,000 119,900 219,000 225,400 $691,900 $67,900 17,100 149,300 175,100 103,000 $512,400 $391,300 CHENG INC. Income Statement For the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold $135,200 Operating expenses, excluding depreciation 11,900 Depreciation expense 32,200 Income tax expense 27,700 Interest expense 4,100 Loss on disposal of plant assets 7,500 Net income 218,600 $172,700 Additional information: 1. New equipment costing $79,800 was purchased for cash during the year. 2. Old equipment having an original cost of $57,100 was sold for $12,900 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $50,300 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) CHENG INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities | Net Income 172700 Adjustments to reconcile net income to Net Decrease in Cash Loss on Disposal of Plant Assets Increase in Accounts Receivable 43700 Net Cash Provided by Operating Activities Cash Flows from Investing Activities DIO TCash Flows from Financing Activities Redemption of Common Stock Net Cash Used by Financing Activities Net Increase in Cash 1 000 TCash at Beginning of Period Cash at End of Period