A comparative balance sheet and income statement is shown for Cruz, Inc. 2016 CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 Assets Cash $ 66,100 Accounts receivable, net 28,500 Inventory 59,700 Prepaid expenses 3,700 Total current assets 158,000 Furniture 74,600 Accum. depreciation-Furniture (11,600) Total assets $221,000 Liabilities and Equity Accounts payable $ 10,400 Wages payable 6, 300 Income taxes payable 1,000 Total current liabilities 17,700 Notes payable (long-term) 20,700 Total liabilities 38,400 Equity Common stock, $5 par value 159,500 Retained earnings 23,100 Total liabilities and equity $221,000 $ 16,600 35,200 66,100 3,000 120,900 85,000 (6,400) $199,500 $ 14,700 -3,500 1,900 20,100 50,500 70,600 125,000 3,900 $199,500 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $341,600 Cost of goods sold 219,800 Gross profit 121,800 Operating expenses Depreciation expense $26,300 Other expenses 62,400 188,700 Income before taxes 33, 100 Income taxes expense 12,100 Net income $ 21,000 QS 12-11 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 | Adjustments to reconcile net income to operating cash flow Income statement items not affecting cash Changes in current operating assets and liabilities QS 12-12 Computing cash from asset sales LO P3 Furniture costing $58,400 is sold at its book value in 2017. Acquisitions of furniture total $48,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture? Furniture Beg. bal. End. bal Accumulated Depreciation Beg bal. End.be Cost Accumulated depreciation Book value (Cash received) QS 12-13 Computing financing cash outflows LO P3 1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2017? 2. Assume that no additional notes payable are issued in 2017. What cash amount is paid to reduce the notes payable balance in 2017? Retained Earnings Beg bail End bal Notes Payable Beg ba Endbal QS 12-14B Direct: Computing cash received from customers LO P5 1. How much cash is received from sales to customers for year 2017? Accounts Receivable Beg. bal. End. bal. 2. What is the net increase or decrease in cash for year 2017? QS 12-15B Direct: Computing operating cash outflows LO P5 1. How much cash is paid to acquire inventory during year 2017? Cash paid for inventory 2. How much cash is paid for "other expenses" during year 2017? (Hint: Examine prepaid expenses and wages payable.) Cash paid for other expenses QS 12-16B Direct: Computing cash from operations LO P5 Use the above balance sheet and income statement to prepare the cash provided (used) from operating activities section by direct method. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities