At December 31 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable 2021 $ 90,700 38,900 2020 $ 22,700 48,100 90,300 81,300 5,100 4,100 216,000 165,200 102,900 116,200 (8,800) (15,900) 8,500 $ 272,600 $ 20,000 4,600 $ 303,000 $ 14,300 Income taxes payable 1,400 2,500 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 24,200 27,100 28,800 66,300 53,000 93,400 215,100 34,900 171,900 7,300 Total liabilities and equity $ 303,000 $ 272,600 CRUZ, INCORPORATED Income Statement Sales For Year Ended December 31, 2021 $ 466,600 300,300 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes. Income taxes expense Net income 166,300 85,200 35,900 45,200 16,500 $ 28,700 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 prepaid expenses and wages payable. 1. Cash paid for inventory 2. Cash paid for operating expenses