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A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 2016 Assets Cash $

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A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 2016 Assets Cash $ 99,000 $ 25,000 Accounts receivable, net 42,800 53,100 Inventory 89,600 99,700 Prepaid expenses 5,600 4,400 Total current assets 237,000 182,200 Furniture 113,000 124,700 Accum. depreciation-Furniture (17,600) (9,400) Total assets $332, 400 $297,500 Liabilities and Equity Accounts payable $ 15,600 $ 21,900 Wages payable 9,400 5,200 Income taxes payable 1,500 2,700 Total current liabilities 26,500 29,800 Notes payable (long-term) 31, 100 65,700 Total liabilities 57,600 95,500 Equity Common stock, $5 par value 238,600 190,000 Retained earnings 36,200 12,000 Total liabilities and equity $332,400 $297,500 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $509,400 Cost of goods sold 327,800 Gross profit 181,600 Operating expenses Denreciation expense $39.200 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $509,400 Cost of goods sold 327,800 Gross profit 181,600 Operating expenses Depreciation expense $39,200 Other expenses 92,900 132, 100 Income before taxes 49,500 Income taxes expense 18,100 Net income $ 31,400 QS 12-12 Computing cash from asset sales LO P3 Furniture costing $57,700 is sold at its book value in 2017. Acquisitions of furniture total $46,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture? Furniture 124,700 Beg. bal. Purchase of assets 11,700 End, bal. 136,400 Accumulated Depreciation Bea, bal QS 12-12 Computing cash from asset sales LO P3 Furniture costing $57,700 is sold at its book value in 2017. Acquisitions of furniture total $46,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture? Furniture 124.700 Beg, bal Purchase of assets 11.700 End, bal 136,400 Accumulated Depreciation Beg, bal End, bal Cost Accumulated depreciation Book value (Cash received) $ 0 $ 31,400 QS 12-13 Computing financing cash outflows LO P3 1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2017? 2. Assume that no additional notes payable are issued in 2017. What cash amount is paid to reduce the notes payable balance in 2017? Retained Earnings Beg bal End, bal Notes Payable Bog, bal

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