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

Cash flows from operating activities $ 0