Problem 17-09A Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2020 Cash $118,000 Accounts receivable 91,600 Inventory 113,000 Prepaid expenses 29,400 Investments 141,000 Equipment 265,700 Accumulated depreciation equipment (46,000) Total $712,700 2019 $47,800 32,200 102,900 26,000 113,500 241,600 (51,400) $512,600 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $111,300 16,100 110,700 219,500 255,100 $712,700 $67,900 17,000 149,500 174,200 104,000 $512,600 $391,900 CHENG INC. Income Statement For the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold $135,900 Operating expenses, excluding depreciation 11,600 Depreciation expense 29,500 Income tax expense 26,300 Interest expense 4,400 Loss on disposal of plant assets 7,500 Net income 215,200 $176,700 Additional information: 1. New equipment costing $79,400 was purchased for cash during the year. 2. Old equipment having an original cost of $55,300 was sold for $12,900 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $25,600 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flo (15,000).) CHENG INC. Statement of Cash Flows Adjustments to reconcile net income to Irinh Ra Division of lohn Wales CALCULATO