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Question: problem 1709a condensed financial data of cheng inc follow cheng...
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Problem 17-09A
Condensed financial data of Cheng Inc. follow.
|
CHENG INC. |
||||||
|
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. |
||||
| 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).)
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