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A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 2018 Assets Cash $
A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 2018 Assets Cash $ 99, 300 $ 24,900 Accounts receivable, 42,600 52,800 net Inventory 89, 100 99,200 Prepaid expenses 5,600 4,500 Total current assets 236,600 181,400 Furniture 113,000 127,500 Accum. depreciation- (17,500) (9,600) Furniture Total assets $332,100 $299,300 Liabilities and Equity Accounts payable $ 15,700 $ 22,000 Wages payable 9,400 5,000 Income taxes payable 1,500 2,800 Total current liabilities 26,600 29,800 Notes payable (long- 30,900 74,300 term) Total liabilities 57,500 104, 100 Equity Common stock, $5 par value 241,200 192,600 Retained earnings 33,400 2,600 Total liabilities and $332,100 $299, 300 equity CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales $512,300 Cost of goods sold 329,700 Gross profit 182,600 Operating expenses Depreciation $39,400 expense Other 93,500 132,900 expenses Income before taxes 49,700 Income taxes 18, 100 expense Net income $ 31,600 Required: Use the indirect method to prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities Adjustments to reconcile net income to operating cash flow Income statement items not affecting cash Changes in current operating assets and liabilities
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