15127 indirect. Computing cash from operatioNS LU P A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2019 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 2019 2018 $ 85,600 $ 21,300 36,800 45,200 77,100 84,900 4,700 3,900 204,200 155,300 94,700 110,500 (14,700) (8,400) $284,200 $257,400 $ 13,400 8,000 $ 19,000 4,500 1,400 2,500 22,800 26,000 28,900 66,400 51,700 92,400 204,000 162,300 28,500 2,700 Total liabilities and equity $284,200 $257,400 Equity Common stock, $5 par value Retained earnings. CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales Cost of goods sold $440,700 283,700 ces Sales CRUZ, INC. Income Statement For Year Ended December 31, 2019 $440,700 Cost of goods sold 283,700 Gross profit 157,000 Operating expenses Depreciation expense $33,900 Other expenses 80,400. 114,300 Income before taxes 42,700 Income taxes expense Net income 15,500 $ 27,200 Required: Use the Indirect method to prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities Adjustments to reconcile net income to operating cash flow. Income statement items not affecting cash Changes in current operating assets and liabilities