Problem 17-09A Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2020 2019 Cash $105,900 $47,000 Accounts receivable 92,700 33,100 Inventory 112,800 101,000 Prepaid expenses 29,200 25,500 Investments 139,400 114,200 Equipment 264,500241,400 Accumulated depreciation-equipment (46,800) (52,400) Total $697,700 $509,800 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $111,900 16,000 117,200 219,100 233,500 $697,700 $67,800 17,300 149,500 175,300 99,900 $509,800 $392,600 CHENG INC. Income Statement For the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold $136,000 Operating expenses, excluding depreciation 11,700 Depreciation AYDASSE 22200 $392,600 CHENG INC. Income Statement For the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold $136,000 Operating expenses, excluding depreciation 11,700 Depreciation expense 32,300 Income tax expense 27,600 Interest expense Loss on disposal of plant assets 7,500 Net income 4,000 219,100 $173,500 Additional information: 1. New equipment costing $81,000 was purchased for cash during the year. 2. Old equipment having an original cost of $57,900 was sold for $12,500 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $39,900 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with el CHENG INC. Statement of Cash Flows Adjustments to reconcile net income to DER Rystem Announcements W il Whey PLUS Course for Click if you would like to Show Work for this question: A LINK TO TEXT