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A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 3 1 2 0 2 1

A comparative balance sheet and income statement is shown for Cruz, Incorporated.
CRUZ, INCORPORATED
Comparative Balance Sheets
At December 3120212020
Assets
Cash $ 99,300 $ 24,900
Accounts receivable, net 42,60052,800
Inventory 89,10099,200
Prepaid expenses 5,6004,500
Total current assets 236,600181,400
Furniture 113,000127,500
Accumulated depreciationFurniture (17,500)(9,600)
Total assets $ 332,100 $ 299,300
Liabilities and Equity
Accounts payable $ 15,700 $ 22,000
Wages payable 9,4005,000
Income taxes payable 1,5002,800
Total current liabilities 26,60029,800
Notes payable (long-term)30,90074,300
Total liabilities 57,500104,100
Equity
Common stock, $5 par value 241,200192,600
Retained earnings 33,4002,600
Total liabilities and equity $ 332,100 $ 299,300
CRUZ, INCORPORATED
Income Statement
For Year Ended December 31,2021
Sales $ 512,300
Cost of goods sold 329,700
Gross profit 182,600
Operating expenses (excluding depreciation)93,500
Depreciation expense 39,400
Income before taxes 49,700
Income taxes expense 18,100
Net income $ 31,600
QS 12-28B (Algo) Direct: Computing cash from operations LO P5
Use the above balance sheet and income statement to prepare the operating activities section by direct method. Assume all the sales were made on credit basis.
Note: Amounts to be deducted should be indicated with a minus sign.

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