CHENG INC. Comparative Balance Sheets December 31


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CHENG INC. Comparative Balance Sheets December 31 1 answer below » Condensed financial data of Cheng Inc. follow. View complete question » CHENG INC. Comparative Balance Sheets December 31 Assets 2014 2013 Cash $ 80,800 $ 48,400 Accounts receivable 92,800 33,000 Inventory 117,500 102,850 Prepaid expenses 28,400 26,000 Investments 143,000 114,000 Equipment 270,000 242,500 Accumulated depreciation—equipment (50,000) (52,000) Total $682,500 $514,750 Liabilities and Stockholders” Equity Accounts payable $112,000 $ 67,300 Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2014 2013 Cash $ 80,800 $ 48,400 Accounts receivable 92,800 33,000 Inventory 117,500 102,850 Prepaid expenses 28,400 26,000 Investments 143,000 114,000 Equipment 270,000 242,500 Accumulated depreciation—equipment (50,000) (52,000) Total $682,500 $514,750 Liabilities and Stockholders” Equity Accounts payable $112,000 $ 67,300 Accrued expenses payable 16,500 17,000 Bonds payable 110,000 150,000 Common stock 220,000 175,000 Retained earnings 224,000 105,450 Total $682,500 $514,750 CHENG INC. Income Statement For the Year Ended December 31, 2014 Sales revenue Less: $392,780 Cost of goods sold $135,460 Operating expenses, excluding depreciation 12,410 Depreciation expense 46,500 Income tax expense 27,280 Interest expense 4,730 Loss on disposal of plant assets 7,500 233,880 Net income $158,900 Additional information: New equipment costing $85,000 was purchased for cash during the year. Old equipment having an original cost of $57,500 was sold for $1,500 cash. Bonds matured and were paid off at face value for cash. A cash dividend of $40,350 was declared and paid during the year. Instructions Prepare a statement of cash flows using the indirect method. View less » Jun 11 2014 04:16 PM

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