A comparative balance sheet and income statement is shown for Cruz, Inc. 2018 CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 Assets Cash $ 73,200 Accounts receivable, net 31,400 Inventory 65,700 Prepaid expenses 4,100 Total current assets 174,400 Furniture 82,700 Accum. depreciation-Furniture (12,800) Total assets $ 244,300 Liabilities and Equity Accounts payable $ 11,500 Wages payable 6,800 Income taxes payable 1,100 Total current liabilities 19,400 Notes payable (long-term) 22,700 Total liabilities 42,100 Equity Common stock, $5 par value 173, 100 Retained earnings 29,100 Total liabilities and equity $244, 300 $ 18,300 38,800 72,800 3,300 133,200 93,500 (7,100) $219,600 $ 16, 200 3,800 2,100 22,100 55,700 77,800 134,500 7,300 $219,600 CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales $375,900 Cost of goods sold 241,900 Gross profit 134,000 Operating expenses Depreciation expense $28,900 Other expenses 68,600 97,500 Income before taxes 36,500 Income taxes expense 13,300 Net income $ 23, 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.) $ 23,200 $ 28,900 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 Accounts receivable decrease Inventory decrease Accounts payable decrease Wages payable increase 28,900 52,100 $