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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
Assets
Cash $ $
Accounts receivable, net
Inventory
Prepaid expenses
Total current assets
Furniture
Accumulated depreciationFurniture
Total assets $ $
Liabilities and Equity
Accounts payable $ $
Wages payable
Income taxes payable
Total current liabilities
Notes payable longterm
Total liabilities
Equity
Common stock, $ par value
Retained earnings
Total liabilities and equity $ $
CRUZ, INCORPORATED
Income Statement
For Year Ended December
Sales $
Cost of goods sold
Gross profit
Operating expenses excluding depreciation
Depreciation expense
Income before taxes
Income taxes expense
Net income $
QS B Algo Direct: Computing cash from operations LO P
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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