A comparative balance sheet and income statement is shown for Cruz, Incorporated. 5 CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash Accounts receivable, net $ 94,800 41,000 $ 24,000 51,000 85,800 95,800 Prepaid expenses 5,400 4,200 227,000 175,000 119,000 (9,000) Inventory Total current assets. Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 109,000 (17,000) $ 319,000 $ 15,000 9,000 $ 285,000 $ 21,000 8,400 5,000 1,400 2,600 25,400 28,600 29,000 69,000 54,400 97,600 229,000 179,000 35,600 Total liabilities and equity $ 319,000 $ 285,000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold $ 488,000 314,000 174,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 89,100 37,600 47,300 17,300 $ 30,000