1. How much cash is paid to acquire inventory during year 2020? 2. How much cash is paid for operating expenses (excluding depreciation) during year 2020? Hint: Examine prepaid expenses and wages payable. 1. Cash paid for inventory 2. Cash paid for operating expenses 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.) Cash flows from operating activities 2019 $ 15,900 33,700 63,300 2,900 115,800 82,200 (6,200) $191,800 Comparative Balance sheets At December 31 2020 Assets Cash $ 63,600 Accounts receivable, net 27,400 Inventory 57,400 Prepaid expenses 3,500 Total current assets 151,900 Furniture 70,500 Accum. depreciation-Furniture (10,900) Total assets $211,500 Liabilities and Equity Accounts payable $ 10,000 Wages payable 6,000 Income taxes payable 1,000 Total current liabilities 17,000 Notes payable (long-term) 20,700 Total liabilities 37,700 Equity Common stock, $5 par value 153,600 Retained earnings 20,200 Total liabilities and equity $211,500 $ 14,100 3,300 1,800 19,200 47,800 67,000 124,000 800 $191,800 CRUZ, INC. Income Statement For Year Ended December 31, 2020 Sales $328,400 Cost of goods sold 211,300 Gross profit 117, 100 Operating expenses (excluding depreciation) 60,000 Depreciation expense 25,300 Income before taxes 31,800 Income taxes expense 11,600 Net income $ 20,200 QS 12-26B (Algo) Direct: Computing cash received from customers LO P5 1. How much cash is received from sales to customers for year 2020? Assume all the sales were made on credit basis. 2. What is the net increase or decrease in the Cash account for year 2020