Question

Problem 13-9A

Condensed financial data of Cheng Inc. follow.

CHENG INC.

Income Statement

For the Year Ended December 31, 2017

$135,600

11,000

32,100

26,900

4,600

7,500

$174,800

Additional information:

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.

Comparative Balance Sheets

December 31

Assets

 

2017

 

2016

Cash

 

$115,800

 

 

$48,500

 

Accounts receivable

 

91,200

 

 

33,000

 

Inventory

 

111,900

 

 

102,400

 

Prepaid expenses

 

29,600

 

 

25,500

 

Investments

 

139,000

 

 

114,700

 

Equipment

 

265,100

 

 

242,400

 

Accumulated depreciation-equipment

 

(47,500

)

 

(52,100

)

   Total

 

$705,100

 

 

$514,400

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Accounts payable

 

$111,700

 

 

$67,400

 

Accrued expenses payable

 

16,100

 

 

17,400

 

Bonds payable

 

116,800

 

 

149,400

 

Common stock

 

219,400

 

 

176,000

 

Retained earnings

 

241,100

 

 

104,200

 

   Total

 

$705,100

 

 

$514,400

 

             

 



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