A comparative balance sheet and income statement is shown for Cruz, Incorp 2020 CRUZ, INCORPORATED Comparative Balance Sheets 2021 At December 31 Assets Cash $ 90,700 Accounts receivable, net 38,900 Inventory 81,300 Prepaid expenses 5,100 Total current assets 216,000 Furniture 102,900 Accumulated depreciation-Furniture (15,900) Total assets $ 303,000 Liabilities and Equity Accounts payable $ 14,300 Wages payable 8,500 Income taxes payable 1,400 Total current liabilities 24, 200 Notes payable (long-term) 28,800 Total liabilities 53,000 Equity Common stock, $5 par value Retained earnings 215, 100 34,900 Total liabilities and equity $ 303,000 $ 22,700 48,100 90,300 4,100 165,200 116, 200 (8,800) $ 272,600 $ 20,000 4,600 2,500 27,100 66,300 93,400 171,900 7,300 $ 272,600 CRUZ, INCORPORATED 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 $ 466,600 300,300 166,300 85,200 35,900 45,200 16,500 $ 28,700 Required: Use the indirect method to prepare the operating activities section of Cr -hould be indicated with a minus sign.) Required: Use the indirect method to prepare the operating activities section of Cruz's statement of cash flows. (Amo should be indicated with a minus sign.) $ 28.700 $ 9,200 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 Accounts receivable decrease Changes in current operating assets and liabilities Inventory decrease Prepaid expense increase Accounts payable decrease Wages payable increase Income taxes payable decrease Depreciation 9,000 (1,000) (5.700) 3,900 (1.100) 35,900 50,200 78.900 $