MESSAGE MY INSTRUCTOR FULL SCRE CHENG INC Comparative Balance Sheets December 31 2016 33,000 26,000 2017 $80,800 Assets Cash Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment $48,400 92,800 117,500 102,850 28,400 143,000 114,000 270,000 242,500 (50,000) (52,000) Total $682,500 $514,750 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings $112,000 16,500 110,000 220,000 224,000 $67,300 17,000 150,000 175,000 105,450 Total 682,500 $514750 CHENG INC. Income Statement For the Year Ended December 31, 2017 Sales revenue Less: $392,780 Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets $135,460 12,410 46,500 27,280 4,730 7.500 233,880 $158,900 Net income