1 Comparative Balance Sheets At December 31 2021 2020 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-furniture Total assets \begin{tabular}{rr} $64,300 & $16,100 \\ 27,600 & 34,100 \\ 57,700 & 64,000 \\ 3,600 & 2,900 \\ \hline 153,200 & 117,100 \\ 72,600 & 82,200 \\ (11,200) & (6,200) \\ \hline$214,600 & $193,100 \\ \hline \end{tabular} Liabilities and Equity Accounts payable Wages payable Incone taxes payable Total current liabilities Notes payable (long-term) Total liabilities \begin{tabular}{rr} $10,100 & $14,200 \\ 6,000 & 3,300 \\ 1,000 & 1,800 \\ \hline 17,100 & 19,300 \\ 20,600 & 47,700 \\ \hline 37,700 & 67,000 \end{tabular} Equity comion stock, $5 par value Retained earnings Total liabilities and equity \begin{tabular}{rr} 154,700 & 123,700 \\ 22,200 & 2,400 \\ \hline$214,660 & $193,100 \\ \hline \end{tabular} CAUZ, INICORPORATEO Income Stateinent For Year Ended December 31, 2021 soles cost of Boods sold Gross profit Qperating expenses (excluding depreciation) 5 330,500 117,800212,700 60,300 se the above balance sheet and income statement to prepare the operating activities section by direct method: Assume all the sales iere made on credit basis. Iote: Amounts to be deducted should be indicated with a minus sign