A Comparative Balance Sheet and Income Statement is Shown for Cruz Inc.
A comparative balance sheet and income statement is shown for Cruz, Inc. 2016 $ 24,900 52,800 99,200 4,500 181,400 CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 Assets Cash $ 99, 300 Accounts receivable, net 42,600 Inventory 89, 100 Prepaid expenses 5,600 Total current assets 236,600 Furniture 113,000 Accum. depreciation-Furniture (17,500) Total assets $332,100 Liabilities and Equity Accounts payable $ 15,700 Wages payable 9,400 Income taxes payable 1,500 Total current liabilities 26,600 Notes payable (long-term) 30,900 Total liabilities 57,500 Equity Common stock, $5 par value 241,200 Retained earnings 33,400 Total liabilities and equity $332, 100 127,500 (9,600) $299, 300 $ 22,000 5,000 2,800 29,800 74,300 104,100 192,600 2,600 $299,300 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $512,300 Cost of goods sold 329,700 Gross profit 182,600 Operating expenses Depreciation expense $ 39,400 Other expenses 93,500 132,900 Income before taxes 49,700 Income taxes expense 18,100 Net income $ 31,600 Net income $ 31,600 QS 16-11 Indirect: Computing cash from operations LO P2 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.) $ 30,000 Cash flows from operating activities Net income Adjustments to reconcile net income to operating cash flow Income statement items not affecting cash Changes in current operating assets and liabilities 0 30,000 $ QS 16-12 Computing cash from asset sales LO P3 Furniture costing $77,500 is sold at its book value in 2017. Acquisitions of furniture total $63,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture? Furniture Beg. bal. End. bal. Accumulated Depreciation Beg. bal. End. bal Cost Accumulated depreciation Book value (Cash received) $ 0 QS 16-13 Computing financing cash outflows LO P3 1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2017? 2. Assume that no additional notes payable are issued in 2017. What cash amount is paid to reduce the notes payable balance in 2017? Retained Earnings Beg. bal. End, bal. Notes Payable Beg. bal. End. bal
