Question: Data for Cheng Inc are presented in P17 9A Further analysis

Data for Cheng Inc. are presented in P17-9A. Further analysis reveals that accounts payable pertain to merchandise creditors.
In p17-9A, Condensed financial data of Cheng Inc. follow.

Additional information:
1. New equipment costing $85,000 was purchased for cash during the year.
2. Old equipment having an original cost of $57,500 was sold for $1,500 cash.
3. Bonds matured and were paid off at face value for cash.
4. A cash dividend of $40,350 was declared and paid during the year.

Prepare a statement of cash flows for Cheng Inc. using the direct method.

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  • CreatedJanuary 30, 2014
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