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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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