Question
A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash
A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash Accounts receivable, net $ 91,100 39,100 $ 22,900 48,600 Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable 81,800 91,300 5,200 4,100 217,200 166,900 105,000 116,200 (16,200) (8,700) $306,000 $274,400 $ 14,400 $ 20,200 8,600 4,500 Income taxes payable 1,400 2,500 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 24,400 27,200 28,900 66,400 53,300 93,600 216,400 172,100 36,300 8,700 Total liabilities and equity $ 306,000 $ 274,400 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales $469,700 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes 302,300 167,400 85,900 Income taxes expense Net income 36,200 45,300 16,500 $28,800 LUMU LUCK, par Retained earnings 36,300 Total liabilities and equity $ 306,000 CRUZ, INCORPORATED Income Statement Sales Cost of goods sold 4/4,100 8,700 $ 274,400 For Year Ended December 31, 2021 $469,700 302,300 167,400 $5,900 Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 36,200 45,300 16,500 $ 26,800 QS 12-28B (Algo) Direct: Computing cash from operations LO P5 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. Note: Amounts to be deducted should be indicated with a minus sign. Cash Bows from operating activities
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