A comparative balance sheet and income statement is shown for Cruz, Inc. 2018 CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 Assets Cash $ 63,600 Accounts receivable, net 27,400 Inventory 57,400 Prepaid expenses 3,500 Total current assets 151,900 Furniture 70,500 Accum. depreciation-Furniture (10,900) Total assets $ 211,500 Liabilities and Equity Accounts payable $ 10,000 Wages payable 6,000 Income taxes payable 1,000 Total current liabilities 17,000 Notes payable (long-term) 20,700 Total liabilities 37,700 Equity Common stock, $5 par value 153,600 Retained earnings 20, 200 Total liabilities and equity $ 211,500 $ 15,900 33,700 63,300 2,900 115,800 82,200 (6,200) $191,800 $ 14,100 3,300 1,800 19,200 47,800 67,000 124,000 800 $191,800 CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales $328,400 Cost of goods sold 211,300 Gross profit 117,100 CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales $328,400 Cost of goods sold 211,300 Gross profit 117,100 Operating expenses Depreciation expense $25,300 Other expenses 60,000 85,300 Income before taxes 31,800 Income taxes expense 11,600 Net income $ 20,200 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.) $ 20,200 Cash flows from operating activities Net income Adjustments to reconcile net income to operating cash flow Income statement items not affecting cash Depreciation Changes in current operating assets and liabilities I $ 25,300 25,300 45,500 $