A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance...
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A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Prepaid expenses 2021 2020 $ 85,900 36,900 $ 21,600 45,800 Inventory Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable 77,200 86,000 4,900 3,900 204,900 157,300 98,900 (15,300) 110,500 (8,300) $ 288,500 $ 259,500 $ 13,600 $ 19,100 8,100 4,300 Income taxes payable 1,300 2,400 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 23,000 25,800 26,800 63,700 49,800 89,500 207,600 165,100 31,100 4,900 Total liabilities and equity $ 288,500 $ 259,500 CRUZ, INCORTORATED Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 444,200 285,900 158,300 81,200 34,200 42,900 15,600 $ 27,300 Use the above balance sheet and income statement to prepare the operating activities section by direct method. Assume all the sales were made on credit basis. (Amounts to be deducted should be indicated with a minus sign.) A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Prepaid expenses 2021 2020 $ 85,900 36,900 $ 21,600 45,800 Inventory Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable 77,200 86,000 4,900 3,900 204,900 157,300 98,900 (15,300) 110,500 (8,300) $ 288,500 $ 259,500 $ 13,600 $ 19,100 8,100 4,300 Income taxes payable 1,300 2,400 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 23,000 25,800 26,800 63,700 49,800 89,500 207,600 165,100 31,100 4,900 Total liabilities and equity $ 288,500 $ 259,500 CRUZ, INCORTORATED Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 444,200 285,900 158,300 81,200 34,200 42,900 15,600 $ 27,300 Use the above balance sheet and income statement to prepare the operating activities section by direct method. Assume all the sales were made on credit basis. (Amounts to be deducted should be indicated with a minus sign.)
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date:
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