Data for Cheng Inc. are presented in P17-9A. Further analysis reveals that accounts payable pertain to merchandise creditors.

Instructions

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

Transcribed Image Text:

CHENG INC. Comparative Balance Sheets December 31 Assets 2017 2016 $ 48,400 33,000 Cash $ 80,800 Accounts receivable 92,800 117,500 28,400 143,000 270,000 (50,000) Inventory Prepaid expenses 102,850 26,000 114,000 242,500 (52,000) Investments Equipment Accumulated depreciation-equipment Total $682,500 $514,750 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings $ 67,300 17,000 150,000 $112,000 16,500 110,000 220,000 224,000 175,000 105,450 Total $682,500 $514,750