CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 2016 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accum. depreciation-Furniture Total assets 99,300 24,900 52,800 99,200 4,500 181,400 127,500 (17,500)9, 600) $332,100 $299,300 42,600 89,100 5,600 236,600 113,000 Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, Retained earnings 15,700 22,000 5,000 2,800 29,800 30,90074,300- 57,500 104,100 9,400 1,500 26,600 $5 par value 192,600 2,600 $332,100 $299,300 241,200 33,400 Total liabilities and equity CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit $512,300 329,700 182,600 Operating expenses Depreciation expense $39,400 Other expenses Income before taxes Income taxes expense Net income 93, 500 132,900 49,700 18,100 31,600 1. How much cash is received from sales to customers for year 2017? Accounts Receivable Beg. bal. End. bal. QS 16-158 Direct: Computing operating cash outflows LO P5 1. How much cash is paid to acquire inventory during year 2017? Cash paid for inventory 2. How much cash is paid for "other expenses" during year 2017? (Hint: Examine prepaid expenses and wages payable.) Cash paid for other expenses QS 16-168 Direct: Computing cash from operations LO P5 Use the above balance sheet and income statement to prepare the cash provided (used) from operating activities section by direct method. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities