CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 2016 Assets Cash $ 73,200 $ 18,300 Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accum. depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable 31,400 38,800 65,700 72,800 4,100 3,300 174,400 133,200 82,700 93,500 (12,800) (7,100) $244,300 $219,600 $ 11,500 $ 16,200 6,800 3,800 Income taxes payable 1,100 2,100 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 19,400 22,100 22,700 55,700 42,100 77,800 173,100 134,500 29,100 7,300 Total liabilities and equity $244,300 $219,600 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Income before taxes Income taxes expense Net income $375,900 241,900 134,000 $28,900 68,600 97,500 36,500 13,300 $ 23,200 QS 12-11 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.) 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 20,400 0 $ 20,400