1. 1. How much cash is received from sales to customers for year 2021? Assume all the sales were made on credit basis.
   2. What is the net increase or decrease in the Cash account for year 2021?
2. 3. Use the below balance sheet and income statement to prepare the operating activities section by direct method. Assume all the sales were made on credit basis.

 

At December 31 Assets Cash CRUZ, INCORPORATED Comparative Balance Sheets 2021 Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated 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 $ 99,000 42,800 89,600 5,600 Sales Cost of goods sold Gross profit 237,000 113,000 (17,600) $ 332,400 $ 15,600 9,400 1,500 26,500 31,100 57,600 238,600 36,200 $ 332,400 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 2020 25,000 53, 100 99,700 4,400 182, 200 124,700 (9,400) $ 297,500 $ 21,900 5,200 2,700 29,800 65,700 95,500 190,000 12,000 $ 297,500 $ 509,400 327,800 181,600 92,900 39,200 49,500 18,100 $ 31,400