Problem 17-09A Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2020 2019 Cash Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment Total $117,600 91,900 111,200 29,300 139,100 265,800 (46,400) $708,500 $47,100 33,000 102,400 25,900 113,800 241,700 (51,100) $512,800 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $111,100 16,200 113,100 219,400 248,700 $708,500 $67,800 17,000 149,300 175,800 102,900 $512,800 CHENG INC. Income Statement For the Year Ended December 31, 2020 Sales revenue $391,900 Less: Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets $136,000 12,600 31,700 27,700 4,500 7,500 220,000 Loss on disposal of plant assets 7,500 220,000 $171,900 Net income Additional information: 1. New equipment costing $80,600 was purchased for cash during the year. 2. Old equipment having an original cost of $56,500 was sold for $12,600 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $26,100 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 $ 4 4 - / - $