Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2017 2016 Cash $100,000 $47,000 Accounts receivable 91,000 32,000 Inventory 111,000 101,000 Prepaid expenses 29,000 25,000 Investments 139,000 113,000 Equipment 264,000 241,000 Accumulated depreciation-equipment (46,000 ) (51,000 ) Total $688,000 $508,000 Liabilities and Stockholders Equity Accounts payable $111,000 $67,000 Accrued expenses payable 16,000 17,000 Bonds payable 110,000 149,000 Common stock 219,000 174,000 Retained earnings 232,000 101,000 Total $688,000 $508,000 CHENG INC. Income Statement For the Year Ended December 31, 2017 Sales revenue $391,000 Less: Cost of goods sold $134,000 Operating expenses, excluding depreciation 11,000 Depreciation expense 31,000 Income tax expense 26,000 Interest expense 4,000 Loss on disposal of plant assets 7,500 213,500 Net income $177,500 Additional information: 1. New equipment costing $79,000 were purchased for cash during the year. 2. Old equipment having an original cost of $56,000 was sold for $12,500 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $46,500 was declared and paid during the year. Prepare a statement of cash flows using the indirect method.