A comparative balance sheet and income statement is shown for Cruz, Incorporated 2020 CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 Assets Cash $ 99, 300 Accounts receivable, net 42,600 Inventory 89, 190 Prepaid expenses 5,600 Total current assets 236,600 Furniture 113,000 Accumulated depreciation-Furniture (17,500) Total assets $ 332, 100 Liabilities and Equity Accounts payable $ 15,700 Wages payable 9,400 Income taxes payable 1,500 Total current liabilities 26,600 Notes payable (long-term) 30,900 Total liabilities 57,500 Equity Common stock, $5 par value 241,200 Retained earnings 33,400 Total liabilities and equity $ 332, 100 $ 24,900 52,800 99,200 4,500 181,400 127,500 (9,600) $ 299, 300 $ 22,000 5,000 2,800 29,800 74,300 104,100 192,600 2,600 $ 299, 300 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 512,300 329,700 182,600 93,500 39,400 49,700 18,100 $ 31,600 Required: Use the indirect method to prepare the operating activities section of Cruz's statement of cash flows. (Amounts to be deducte should be indicated with a minus sign.) Nawal Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 329,700 182,600 93,500 39,400 49,700 18,100 $ 31,600 Required: Use the indirect method to prepare the operating activities section of Cruz's statement of cash flows. (Amounts to should be indicated with a minus sign.) $ 31,600 $ 39,400 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation Changes in current operating assets and liabilities Accounts payable decrease Accounts receivable decrease Income taxes payable decrease Inventory decrease Prepaid expense increase Wages payable increase 39,400 71,000 $ Net cash provided by operating activities