Required
Use the indirect method to prepare the operating activities section of Cruz’s statement of cash flows.

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CRUZ, INC. 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... $488,000 314,000 174,000 89,100 37,600 47,300 17,300 $ 30,000 CRUZ, INC. Comparative Balance Sheets 2021 At December 31 Assets Cash Accounts receivable, net. Inventory..... Prepaid expenses... Total current assets Furniture...... Accum. depreciation-Furniture Total assets... Liabilities and Equity Accounts payable..... Wages payable...... Income taxes payable... Total current liabilities. Notes payable (long-term). Total liabilities........ ****** Equity Common stock, $5 par value....... Retained earnings... Total liabilities and equity. $ 94,800 41,000 85,800 5,400 227,000 109,000 (17,000) $319,000 $ 15,000 9,000 1,400 25,400 29,000 54,400 229,000 35,600 $319,000 2020 $ 24,000 51,000 95,800 4,200 175,000 119,000 (9,000) $285,000 $ 21,000 5,000 2,600 28,600 69,000 97,600 179,000 8,400 $285,000