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Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2019 Cash Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment Total 2020 $109,700 92,200 113,000 29,900 139,800 265,400 (47,200) $702,800 $47,900 32,700 101,200 25,900 113,500 242,200 (53,000) $510,400 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $111,800 16,100 118,700 219,400 236,800 $702,800 $67,300 17,100 149,600 174,500 101,900 $510,400 CHENG INC. Income Statement For the Year Ended December 31, 2020 Sales revenue $392,800 $392,800 CHENG INC. Income Statement For the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold $134,900 Operating expenses, excluding depreciation 12,400 Depreciation expense 31,100 Income tax expense 26,900 Interest expense 4,100 Loss on disposal of plant assets 7,500 Net income 216,900 $175,900 Additional information: 1. New equipment costing $80,500 was purchased for cash during the year. 2. Old equipment having an original cost of $57,300 was sold for $12,900 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $41,000 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 For the Year Ended December 31, 2020 T Cash Flows from Operating Activities A CHENG INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities T Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities T Depreciation Expense Loss on Disposal of Plant Assets Increase in Accounts Receivable Increase in Inventory T Increase in Prepaid Expenses T Increase in Accounts Payable A T Decrease in Accrued Expenses Payable A Net Cash Provided by Operating Activities I Cash Flows from Investing Activities Sale of Plant Assets Purchase of Investments * Sale of Plant Assets Net Cash Used by Investing Activities T Cash Flows from Financing Activities A | Payment of Cash Dividends Redemption of Bonds Redemption of Common Stock Redemption of Bonds Redemption of Common Stock T Net Cash Used by Financing Activities Net Increase in Cash T Cash at Beginning of Period Cash at End of Period Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT

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