Prepare a statement of cash flows using the indirect method.
Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2020 Cash Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment Total $106,200 91,600 111,800 29,400 140,500 264,200 (46,500) $697,200 2019 $47,400 33,900 101,500 25,500 114,800 242,100 (52,900) $512,300 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $111,300 16,100 111,000 220,000 238,800 $697,200 $67,100 17,300 149,300 174,700 103,900 $512,300 $392 CHENG INC. Income Statement For the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold $136,000 Operating expenses, excluding depreciation 12,700 Depreciation expense 31,000 Income tax expense 27,600 Interest expense 4,400 Loss on disposal of plant assets 7,500 Net income 219 $173 Additional information: 1. New equipment costing $79,900 was purchased for cash during th 2. Old equipment having an original cost of $57,800 was sold for $12 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $38,800 was declared and paid during the year Prepare a statement of cash flows using the indirect method. (Show amounts that de CHENG INC. Statement of Cash Flows Adjustments to reconcile net income to CES deo) udy. Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 2020 Assets Cash Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment Total $106,200 91,600 111,800 29,400 140,500 264,200 (46,500) $697,200 2019 $47,400 33,900 101,500 25,500 114,800 242,100 (52,900) $512,300 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $111,300 16,100 111,000 220,000 238,800 $697,200 $67,100 17,300 149,300 174,700 103,900 $512,300 $392,900 CHENG INC. Income Statement For the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold $136,000 Operating expenses, excluding depreciation 12,700 Depreciation expense 31,000 Income tax expense 27,600 Interest expense 4,400 Loss on disposal of plant assets 7,500 Net income 219,200 $173,700 Additional information: 1. New equipment costing $79,900 was purchased for cash during the year. 2. Old equipment having an original cost of $57,800 was sold for $12,900 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $38,800 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 Adjustments to reconcile net income to
