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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.
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).)

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