A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC Comparative Balance Sheets December 31, 2017 2017 2016 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accum. depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payablee Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 89,000 22,100 46,900 88,000 4,000 161,000 113,300 (15,300) (8,600 $295,600 $265,700 38,200 80,000 4,900 212,100 98,800 $ 13,900 19,600 4,600 2,600 26,800 69,000 95,800 8,200 1,400 23,500 28,900 52,400 215,000 28,200 169,100 800 $295,600 $265,700 CRUZ, INC Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Oneratina exnenses $454,900 292,800 162,100 Gross profit Operating expenses 162,100 Depreciation expense $35,000 Other expenses Income before taxes Income taxes expense Net income 83,000 118,000 44,100 16,000 $ 28,100 QS 16-11 Indirect: Computing cash from operations LO P2 Required: Use the indirect method to prepare the cash provided or used from operating activities section only of the statement of cash flows for this company. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities Net income Adjustments to reconcile net income to operating cash flow Income statement items not affecting cash Depreciation Changes in current operating assets and liabilities Accounts receivable decrease Inventory decrease Prepaid expense increase Accounts payable decrease Accounts payable decrease Wages payable increase Income taxes payable decrease 0 Net cash provided by operating activities