ties Instructions Prepare a statement of cash flows for Cheng Inc, using the direct method. P17.11A (LO 2) Financial Statement The comparative balance sheets for Rothlisberger Company as of December 31 are presented below. Rothlisberger Company Comparative Balance Sheets December 31 Assets 2020 2019 Cash $ 81,000 $ 45,000 Accounts receivable 41,000 62,000 Inventory 151,450 142,000 Prepaid expenses 15,280 21,000 Land 105.000 130,000 Buildings 200,000 200,000 Accumulated depreciation buildings (60,000) (40,000) Equipment 221,000 155,000 Accumulated depreciation equipment (45,000) (35,000) Total $709,730 $680,000 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings Total $ 47,730 260,000 200,000 202,000 $709,730 $ 40,000 300,000 160,000 180,000 $680,000 Additional information: 1. Operating expenses include depreciation expense of $42,000 and charges from prepaid expenses of $5,720. 2. Land was sold for cash at book value. 3. Cash dividends of $20,000 were paid. 4. Net income for 2020 was $42,000. 5. Equipment was purchased for $88,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $6,000 cash. 6. Bonds were converted at face value by issuing 40,000 shares of $1 par value common stock