Question

Problem 17-09A Condensed financial data of Cheng Inc. follow. CHENG INC Comparative Balance Sheets December 31 Assets 2020 2019 Cash $105,400 $48,900 Accounts receivable 91,000 33,700 Inventory 111,400 101,900 Prepaid expenses 29,700 25,100 Investments 139,800 114,100 Equipment 264,500 241,200 Accumulated depreciation-equipment (46,900) (51,600) Total $694,900 $513,300 Liabilities and Stockholders' Equity Accounts payable $111,400 $67,300 Accrued expenses payable Bonds payable 16,400 17,300 119,400 150,000 Common stock 220,100 175,300 Retained earnings 227,600 103,400 $694,900 $513,300 Total

Please help me to prepare a statement of cash flows using the indirect method

Thank you

Answer 1

173,400 31,500 7,500 (57,300)| (9,500) (4,600) 44,100 (900) CHENG INC Cash Flow Statements For the Year Ended 31 December, 2020 Cash flow from Operating Activities Net Income Adjustment to reconcile net income to net cash provided by operating activities Depreciation Loss on disposal of plant assets Increase in Accounts receivable (91,000 - 33,700) Increase in Inventory (111,400 - 101,900) Increase in Prepaid expenses (29,700 - 25,100) Increase in Accounts payable (111,400 - 67,300) Decrease in Accrued expenses payable (16,400 - 17,300) Net Cash provided by operating activities Cash flow from Investing Activities Purchase of Equipment Purchase of Investment (139,800 - 114,100) Sale of Equipment Net cash used by Investing Activities Cash flow from Financing Activities Redemption of Bonds payable (119,400 - 150,000) Issue of shares (220,100 - 175,300) Payment of dividends Net Cash used by Financing Activities Net Increase in Cash Cash Balance, December 31, 2019 Cash Balance, December 31, 2020 10,800 184,200 (79,900) (25,700) 12,900 (92,700) (30,600) 44,800 (49,200) (35,000) 56,500 48,900 105,400