Problem 13-9A

Problem 13-9A Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 ssets 2017 2016 $107,600 Cash $47,800 Accounts receivable 91.900 33.100 111,900 102,100 Inventory 25,900 Prepaid expenses 29.400 113,700 Investments 139.800 Equipment 264.100 241.800 Accumulated depreciation-equipment 47.700 51.000 $697,000 $513,400 Tota Liabilities and Stockholders' Equity Accounts payable $111,400 $67,400 17,200 Accrued expenses payable 6.500 117,100 149,500 Bonds payable Common stock 219.000 175.100 Retained earnings 233.000 104.200 $697,000 $513,400 Tota CHENG INC. Income Statement For the Year Ended December 31, 2017 Sales revenue $391,500 Less: Cost of goods sold $135,600 Operating expenses, excluding depreciation 2,500 34,900 Depreciation expense Income tax expense 27.400 Interest expense 4.800