Problem 13-9A Condensed financial data of Cheng Inc. follow. CHENG INC. Comparat
ID: 2600007 • Letter: P
Question
Problem 13-9A
Condensed financial data of Cheng Inc. follow.
CHENG INC.
Comparative Balance Sheets
December 31
Assets
2015
2014
$90,170
$48,740
91,510
33,970
112,670
101,970
28,690
25,790
138,420
114,130
270,720
242,030
(50,560
)
(52,840
)
$681,620
$513,790
Liabilities and Stockholders’ Equity
$111,810
$67,170
16,130
17,100
113,470
149,750
220,330
175,810
219,880
103,960
$681,620
$513,790
CHENG INC.
Income Statement
For the Year Ended December 31, 2015
$391,700
134,690
12,280
45,430
26,020
4,080
6,810
229,310
$162,390
Additional information:
CHENG INC.
Comparative Balance Sheets
December 31
Assets
2015
2014
Cash$90,170
$48,740
Accounts receivable91,510
33,970
Inventory112,670
101,970
Prepaid expenses28,690
25,790
Investments138,420
114,130
Equipment270,720
242,030
Accumulated depreciation—equipment(50,560
)
(52,840
)
Total$681,620
$513,790
Liabilities and Stockholders’ Equity
Accounts payable$111,810
$67,170
Accrued expenses payable16,130
17,100
Bonds payable113,470
149,750
Common stock220,330
175,810
Retained earnings219,880
103,960
Total$681,620
$513,790
CHENG INC. Statement of Cash Flows For the Year Ended December 31, 2015 Adjustments to reconcile net income toExplanation / Answer
Statement of cash flow :
Cash flow from operating activities Net income 162390 Adjustment to reconcile net income Depreciation exp 45430 Loss on disposal of plant assets 6810 Increase account receivable (57540) Increase inventory (10700) Increase prepaid exp (2900) Increase account payable 44640 Decrease Accrued expenses payable (970) 24770 Net cash flow from operating activities 187160 Cash flow from investing activities Purchase of equipment (84300) Sale of equipment 1090 Purchase of investment (24290) Net Cash flow from investing activities (107500) Cash flow from financing activities Bonds repaid (36280) Dividend paid (46470) Issue common stock 44520 Net Cash flow from financing activities (38230) Net cash flow 41430 Beginning cash 48740 Ending cash 90170