Question
A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2013 2013 2012 Assets Cash $
A comparative balance sheet and income statement is shown for Cruz, Inc. |
CRUZ, INC. Comparative Balance Sheets December 31, 2013 | |||||||
2013 | 2012 | ||||||
Assets | |||||||
Cash | $ | 94,800 | $ | 24,000 | |||
Accounts receivable, net | 41,000 | 51,000 | |||||
Inventory | 85,800 | 95,800 | |||||
Prepaid expenses | 5,400 | 4,200 | |||||
Furniture | 109,000 | 119,000 | |||||
Accum. depreciationFurniture | (17,000 | ) | (9,000 | ) | |||
Total assets | $ | 319,000 | $ | 285,000 | |||
Liabilities and Equity | |||||||
Accounts payable | $ | 15,000 | $ | 21,000 | |||
Wages payable | 9,000 | 5,000 | |||||
Income taxes payable | 1,400 | 2,600 | |||||
Notes payable (long-term) | 29,000 | 69,000 | |||||
Common stock, $5 par value | 229,000 | 179,000 | |||||
Retained earnings | 35,600 | 8,400 | |||||
Total liabilities and equity | $ | 319,000 | $ | 285,000 | |||
CRUZ, INC. Income Statement For Year Ended December 31, 2013 | ||||||
Sales | $ | 488,000 | ||||
Cost of goods sold | 314,000 | |||||
Gross profit | 174,000 | |||||
Operating expenses | ||||||
Depreciation expense | $ | 37,600 | ||||
Other expenses | 89,100 | 126,700 | ||||
Income before taxes | 47,300 | |||||
Income taxes expense | 17,300 | |||||
Net income | $ | 30,000 | ||||
Required: |
Use the indirect method to prepare the cash provided or used from operating activities section only of the statement of cash flows for this company. (Amounts to be deducted should be indicated with a minus sign.) |
Cash flows from operating activities Net income $30,000 Adjustments to reconcile net income to operating cash flow Depreciation $37,600 Accounts receivable decrease 10,000 Inventory decrease 10,000 Prepaid expense increase ? Accounts payable decrease ? Wages payable increase 4,000 Income taxes payable decrease ? 0 ? Net cash provided by operating activities ? |
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