CRUZ, INC Comparative Balance Sheets December 31, 2019 2019 2018 Assets Cash 72,900 18,100 31,300 65,600 4000 Accounts receivable, net Inventory Prepaid expenses 38,400 72,100 3,300 Total current asseta 173,800 131,900 93,500 Furniture 80,600 (12,500) Accum. depreciation-Purniture (7,100) $218,300 $241,900 Total assets Liabilitios and Equity Aounta payable Wages payable Ineone taxes payable Total current 1iabilities $11,400 6,800 1,200 19,400 24,800 44.200 16,100 3,800 2,100 22,000 55,800 77.800 Notes payable (long-tern) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 170,300 27,400 $241,900 134,800 5,700 $218,300 CRU, INC Income Statement For Year Ended December 31, 2019 Sales $373,800 240,600 133,200 Cost of goods sold Gross profit Operating expenses Depreciation xpense other expenses 28,800 68,300 97,100 36,100 13,100 Income before taxes Incone taxe pense $23,000 Net income 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 Payments for inventory Payments for other expenses Payments for taxes Receipts from sales to customers Net cash provided by operating activities 0 The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 $1,911,000 936,390 974,610 Sales Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patenta Utilities expense $261,807 45,864 51,597 5,733 21,021 386,022 588,588 7,644 $ 596,232 Gain on sale of equipment Net income $27,050 inerease 18,200 increase Accounts payable Salaries payable Accounts receivable $15,875 decrease 5,100 deere Inventory Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. Statement of Cash Flows (partial) Cash flows from operating activities 23,000 Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Changes in current operating assets and liabilities Increase in accounts receivable 7,100 6,500 Increase in inventory 36,600