Refer to the data in QS 12-6.
QS 12-6

1. How much cash is paid to acquire merchandise inventory during year 2013?
2. How much cash is paid for operating expenses during year 2013?

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CRUZ, INC. Comparative Balance Sheets December 31, 2013 2012 2013 Assets $ 94,800 $ 24,000 Cash Accounts receivable, net 41,000 51,000 Inventory . 85,800 95,800 Prepaid expenses 5,400 4,200 Furniture ... 109,000 119,000 (9,000) $285,000 Accum. depreciation-Furniture (17,000) Total assets $319,000 Liabilities and Equity Accounts payable ... Wages payable .... Income taxes payable $ 15,000 $ 21,000 9,000 5,000 1,400 2,600 Notes payable (long-term) .... Common stock, $5 par value 29,000 69,000 229,000 179,000 Retained earnings Total liabilities and equity 35,600 8,400 $319,000 $285,000 CRUZ, INC. Income Statement For Year Ended December 31, 2013 Sales ..... $488,000 Cost of goods sold Gross profit .... Operating expenses Depreciation expense Other expenses 314,000 174,000 $37,600 89,100 126,700 Income before taxes 47,300 Income taxes expense 17,300 Net income ... $ 30,000