*Problem 13-9A Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 2014 $47,460 33,290 102,200 25,080 114,110 242,010 (51,340) ssets Cash Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment(49,700) 2015 $90,460 91,110 112,100 28,840 137,130 270,770 Total $680,710 3060220 $512,810 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings $67,630 17,070 149,820 174,750 103,540 $680,710 $512,810 $111,470 16,110 112,730 220,320 220,080 Total CHENG INC. Income Statement For the Year Ended December 31, 2015 Sales Less $391,370 135,600 11,280 45,680 27,560 4,200 Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant asstets 6,920 231,240 Net income Additional information: 1. New Equipment costing $84,310 were purchased for cash during the year. 2. Old Equipment having an original cost of $55,550 was sold for $1,310 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $43,590 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