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 $ 90,700 38,900 $ 22,700 48,100 Prepaid expenses Inventory Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable 81,300 90,300 5,100 4,100 216,000 165,200 102,900 116,200 Total liabilities and equity Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings (15,900) $ 303,000 $ 14,300 8,500 $ 272,600 $ 20,000 4,600 1,400 2,500 24,200 27,100 28,800 66,300 53,000 93,400 215,100 171,900 34,900 7,300 $ 303,000 $ 272,600 (8,800) Sales CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 466,600 300,300 166,300 85,200 35,900 45,200 16,500 $ 28,700 1. How much cash is paid to acquire inventory during year 2021? 2. How much cash is paid for operating expenses (excluding depreciation) during year 2021? Hint: Examine prepaid expenses and wages payable. 1. Cash paid for inventory 2. Cash paid for operating expenses
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