Problem 17-09A

Condensed financial data of Cheng Inc. follow.

CHENG INC. Comparative Balance Sheets December 31
Assets		2020			2019
Cash		$101,200			$48,300
Accounts receivable		92,700			32,200
Inventory		111,400			102,100
Prepaid expenses		29,600			25,900
Investments		140,800			113,400
Equipment		264,300			243,000
Accumulated depreciation-equipment		(47,200	)		(51,800	)
Total		$692,800			$513,100
Liabilities and Stockholders Equity
Accounts payable		$111,400			$68,000
Accrued expenses payable		16,100			17,400
Bonds payable		110,500			149,400
Common stock		219,400			174,200
Retained earnings		235,400			104,100
Total		$692,800			$513,100

CHENG INC. Income Statement For the Year Ended December 31, 2020
Sales revenue				$392,600
Less:
Cost of goods sold		$134,500
Operating expenses, excluding depreciation		11,400
Depreciation expense		34,200
Income tax expense		27,700
Interest expense		4,300
Loss on disposal of plant assets		7,500		219,600
Net income				$173,000

Additional information:

1.		New equipment costing $80,500 was purchased for cash during the year.
2.		Old equipment having an original cost of $59,200 was sold for $12,900 cash.
3.		Bonds matured and were paid off at face value for cash.
4.		A cash dividend of $41,700 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).)