A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 2018 Assets Cash Accounts receivable, net $ 71,600 $ 18,000 30,900 38,200 es Inventory Prepaid expenses Total current assets Furniture Accum. depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable 64,700 71,700 4,000 3,300 171,200 131,200 80,600 93,500 (12,500) (7,000) $239,300 $217,700 $ 11,300 $ 16,000 6,800 3,800 Income taxes payable 1,100 2,100 Total current liabilities Notes payable (long-term) Total liabilities Equity 19,200 21,900 22,800 55,800 42,000 77,700 Common stock, $5 par value 174,100 138,700 Retained earnings 23,200 1,300 Total liabilities and equity $239,300 $217,700 Sales CRUZ, INC. Income Statement For Year Ended December 31, 2019 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Income before taxes Income taxes expense Net income $372,800 239,900 132,900 $28,700 68,100 96,800 36,100 13,200 $ 22,900 Required: Use the indirect method to prepare the operating activities section of the statement of cash flows. (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 Net income $ 22,900 Required: Use the indirect method to prepare the operating activities section of the statement of cash flows. (Amounts to 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