Chapter 17 CHENG INC Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Investments Equipment 2016 S 48,400 33,000 102,850 26,000 114,000 242,500 (52,000) $514,750 2017 80,800 92,800 117,500 28,400 143,000 270,000 (50,000) 682,500 Total Liabilities and Stockholders Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings 112,000 16,500 110,000 220,000 224,000 $682,500 67,300 17,000 150,000 175,000 105,450 Total 514,750 CHENG INC Income Statement For the Year Ended December 31, 2017 Sales revenue Less: 392,780 Cost of goods sold Operating expenses, excluding $135,460 depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets 12,410 46,500 27,280 4,730 7,500 233,880 $158,900 Net income 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 using the indirect method