Aa Aa E 7. Statement of cash flows: Indirect method The income statement and comparative balance sheets for Chang Inc. follow: Chang Inc. Chang Inc. Income Statement Balance Sheet For the Year Ended December 31, 2013 December 31, 2013 $1,069,400 Sales Increase 2012 Decrease 699,100 2013 Cost of merchandise sold $370,300 Assets Gross profit Cash $134,600 $42,600 $92,000 operating expenses: $9,900 Accounts receivable (net) 71,300 61,000 10,300 Depreciation expense 177,700 Inventories 162,800 147,800 15,000 Other operating expenses 187,600 Property, plant & equipment 299,100 321,300 (22,200) Total operating expenses $182,700 Accumulated depreciation (63,500) (53,600) (9,900) Income from operations Total assets $604,300 $519,100 $85,200 Other revenue