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CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 2018 Assets Cash $ 85,600 $ 21,300 Accounts receivable, net 36,800 45,200 Inventory 77,100 84,900 Prepaid
CRUZ, INC. Comparative Balance Sheets December 31, 2019 | |||||||
2019 | 2018 | ||||||
Assets | |||||||
Cash | $ | 85,600 | $ | 21,300 | |||
Accounts receivable, net | 36,800 | 45,200 | |||||
Inventory | 77,100 | 84,900 | |||||
Prepaid expenses | 4,700 | 3,900 | |||||
Total current assets | 204,200 | 155,300 | |||||
Furniture | 94,700 | 110,500 | |||||
Accum. depreciationFurniture | (14,700 | ) | (8,400 | ) | |||
Total assets | $ | 284,200 | $ | 257,400 | |||
Liabilities and Equity | |||||||
Accounts payable | $ | 13,400 | $ | 19,000 | |||
Wages payable | 8,000 | 4,500 | |||||
Income taxes payable | 1,400 | 2,500 | |||||
Total current liabilities | 22,800 | 26,000 | |||||
Notes payable (long-term) | 28,900 | 66,400 | |||||
Total liabilities | 51,700 | 92,400 | |||||
Equity | |||||||
Common stock, $5 par value | 204,000 | 162,300 | |||||
Retained earnings | 28,500 | 2,700 | |||||
Total liabilities and equity | $ | 284,200 | $ | 257,400 | |||
CRUZ, INC. Income Statement For Year Ended December 31, 2019 | ||||||
Sales | $ | 440,700 | ||||
Cost of goods sold | 283,700 | |||||
Gross profit | 157,000 | |||||
Operating expenses | ||||||
Depreciation expense | $ | 33,900 | ||||
Other expenses | 80,400 | 114,300 | ||||
Income before taxes | 42,700 | |||||
Income taxes expense | 15,500 | |||||
Net income | $ | 27,200 | ||||
1. How much cash is paid to acquire inventory during year 2019? 2. How much cash is paid for "other expenses" during year 2019? Hint: Examine prepaid expenses and wages payable.
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