Condensed financial data of Cheng Inc. follow.

CHENG INC.

Comparative Balance Sheets

December 31

Assets

2017

2016

Cash

$119,000

$47,100

Accounts receivable

93,000

32,400

Inventory

113,000

102,400

Prepaid expenses

29,100

25,700

Investments

139,500

114,700

Equipment

264,800

241,800

Accumulated depreciation-equipment

(46,500

)

(51,700

)

Total

$711,900

$512,400

Liabilities and Stockholders Equity

Accounts payable

$111,500

$67,600

Accrued expenses payable

16,400

17,100

Bonds payable

114,000

149,300

Common stock

219,100

174,200

Retained earnings

250,900

104,200

Total

$711,900

$512,400

CHENG INC.

Income Statement

For the Year Ended December 31, 2017

Sales revenue$391,400

Less:

Cost of goods sold

$134,700

Operating expenses, excluding depreciation

12,000

Depreciation expense

32,300

Income tax expense

26,800

Interest expense

4,700

Loss on disposal of plant assets

7,500

218,000

Net income

$173,400

Additional information:

1.New equipment costing $80,700 were purchased for cash during the year.

2.Old equipment having an original cost of $57,700 was sold for $12,700 cash.

3.Bonds matured and were paid off at face value for cash.

4.A cash dividend of $26,700 was declared and paid during the year.

Prepare a statement of cash flows using the indirect method.