Your answer is partially correct. Try again. Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2020 2019 Cash Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment Total $116,800 92,000 111,800 29,200 139,100 265,400 (47,900) $706,400 $48,100 32,300 102,000 25,200 113,000 242,300 (51,400) $511,500 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $ 111,600 16,300 112,600 220,100 245,800 $706,400 $68,000 17,100 149,000 176,000 101,400 $511,500 $391,900 CHENG INC. Income Statement For the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold $135,500 Operating expenses, excluding depreciation 11,100 Depreciation expense 33,200 Income tax expense 27,500 Interest expense 4,700 Loss on disposal of plant assets 7,500 Net income 219,500 $172,400 Additional information: 1. New equipment costing $80,200 was purchased for cash during the year. 2. Old equipment having an original cost of $57,100 was sold for $12,900 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $28,000 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).) CHENG INC. Statement of Cash Flows December 31, 2020 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to $ JOOTONI Increase in Prepaid Expenses Increase in Accounts Payable || Decrease in Accrued Expenses Payable Net Cash Used by Operating Activities Cash Flows from Financing Activities Redemption of Bonds Payment of Cash Dividends Redemption of Common Stock Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period