Problem 17-10A

Condensed financial data of Cheng Inc. follow.

CHENG INC. Comparative Balance Sheets December 31
Assets		2020			2019
Cash		$99,700			$47,900
Accounts receivable		92,900			33,900
Inventory		111,900			101,500
Prepaid expenses		29,400			25,100
Investments		140,600			113,100
Equipment		270,800			242,200
Accumulated depreciation-equipment		(46,000	)		(51,600	)
Total		$699,300			$512,100
Liabilities and Stockholders Equity
Accounts payable		$111,000			$67,200
Accrued expenses payable		16,000			17,500
Bonds payable		118,000			149,400
Common stock		219,700			175,700
Retained earnings		234,600			102,300
Total		$699,300			$512,100

CHENG INC. Income Statement For the Year Ended December 31, 2020
Sales revenue				$392,100
Less:
Cost of goods sold		$135,600
Operating expenses, excluding depreciation		11,400
Depreciation expense		38,800
Income tax expense		26,500
Interest expense		5,000
Loss on disposal of plant assets		6,500		223,800
Net income				$168,300

Additional information:

1.		New equipment costing $80,700 was purchased for cash during the year.
2.		Old equipment having an original cost of $52,100 was sold for $1,200 cash.
3.		Bonds matured and were paid off at face value for cash.
4.		A cash dividend of $36,000 was declared and paid during the year.

Further analysis reveals that accounts payable pertain to merchandise creditors.

Prepare a statement of cash flows for Cheng Inc. using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

CHENG INC. Statement of Cash Flows cash payments: S