Problem 13-9A

Condensed financial data of Cheng Inc. follow.

CHENG INC. Comparative Balance Sheets December 31
Assets		2015			2014
Cash		$90,170			$48,740
Accounts receivable		91,510			33,970
Inventory		112,670			101,970
Prepaid expenses		28,690			25,790
Investments		138,420			114,130
Equipment		270,720			242,030
Accumulated depreciationequipment		(50,560	)		(52,840	)
Total		$681,620			$513,790
Liabilities and Stockholders Equity
Accounts payable		$111,810			$67,170
Accrued expenses payable		16,130			17,100
Bonds payable		113,470			149,750
Common stock		220,330			175,810
Retained earnings		219,880			103,960
Total		$681,620			$513,790

CHENG INC. Income Statement For the Year Ended December 31, 2015
Sales				$391,700
Less:
Cost of goods sold		134,690
Operating expenses, excluding depreciation		12,280
Depreciation expense		45,430
Income tax expense		26,020
Interest expense		4,080
Loss on disposal of plant asstets		6,810		229,310
Net income				$162,390

Additional information:

1.		New Equipment costing $84,300 were purchased for cash during the year.
2.		Old Equipment having an original cost of $55,610 was sold for $1,090 cash.
3.		Bonds matured and were paid off at face value for cash.
4.		A cash dividend of $46,470 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, 2015 Adjustments to reconcile net income to