1 A comparative balance sheet and income statement is shown for Cruz, Incorporated. 10 CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 points Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets 2020 $ 73,200 31,400 $ 18,300 38,800 65,700 72,800 4,100 3,300 Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity 174,400 82,700 (12,800) 133,200 $ 244,300 Accounts payable Wages payable Income taxes payable $ 11,500 6,800 93,500 (7,100) $ 219,600 $ 16,200 3,800 1,100 2,100 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 19,400 22,100 22,700 55,700 42,100 77,800 173,100 29,100 134,500 7,300 Total liabilities and equity $ 244,300 $ 219,600 CRUZ, INCORPORATED 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 Required: $ 375,900 241,900 134,000 68,600 28,900 36,500 13,300 $ 23,200 Use the indirect method to prepare the operating activities section of Cruz's statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)