Problem 13-9A Condensed financial data of Cheng Inc. follow CHENG INC. Comparative Balance Sheets 2014 $48,160 32,340 101,820 25,410 114,240 241,350 2015 $89,140 92,810 112,300 28,770 137,480 270,000 ssets Cash Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment (49,840) (51,300) Total $680,660 $512,020 Liabilities and Stockholders' Equit Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings $111,290 16,220 110,030 219,780 223,340 $680,660 $67,680 17,010 149,360 174,860 103,110 $512,020 Total CHENG INC Income Statement For the Year Ended December 31, 2015 Sales Less $391,190 134,260 11,230 Cost of goods sold Operating expenses, excluding depreciation CHENG INC. Income Statement For the Year Ended December 31, 2015 Sales $391,190 Less Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant asstets 134,260 11,230 47,810 26,040 4,080 6,680 230,100 $161,090 Net income Additional information: 1. New Equipment costing $85,850 were purchased for cash during the year 2. Old Equipment having an original cost of $57,200 was sold for $1,250 cash 3. Bonds matured and were paid off at face value for cash 4. A cash dividend of $40,860 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