A comparative balance sneet and income statement is snown for Cruz, incorporatea. 2020 CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 Assets Cash $ 99,000 Accounts receivable, net 42,800 Inventory 89,600 Prepaid expenses 5,600 Total current assets 237,000 Furniture 113,000 Accumulated depreciation-Furniture (17,600) Total assets $ 332,400 Liabilities and Equity Accounts payable $ 15,600 Wages payable 9,400 Income taxes payable 1,500 Total current liabilities 26,500 Notes payable (long-term) 31,100 Total liabilities 57,600 Equity Common stock, $5 par value 238,600 Retained earnings 36,200 Total liabilities and equity $ 332,400 $ 25,000 53,100 99,700 4,400 182,200 124,700 (9,400) $ 297,500 $ 21,900 5,200 2,700 29,800 65, 700 95,500 190,000 12,000 $ 297,500 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 509,400 327,800 181,600 92,900 39,200 49,500 18,100 $ 31,400 31,100 57,600 65, 700 95,500 Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 238,600 36,200 $ 332,400 190,000 12,000 $ 297,500 . CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 509,400 327,800 181,600 92,900 39,200 49,500 18,100 $ 31,400 QS 12-27B (Algo) Direct: Computing operating cash outflows LO P5 1. How much cash is paid to acquire inventory during year 2021? 2. How much cash is paid for operating expenses (excluding depreciation) during year 2021? Hint: Examine wages payable. 1. Cash paid for inventory 2. Cash paid for operating expenses 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. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities $ 0