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Comparative Balance Sheets December 31, 2017 2017 2016 $ 99,300 42,600 89, 100 5,600 236,600 113,000 (17,500) $332,100 $ 24,900 52,800 99,200 4,500 181,400 127,500 (9,600) $299, 300 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accum. depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 15,700 9,400 1,500 26,600 30,900 57,500 $ 22,000 5,000 2,800 29,800 74, 300 104,100 241,200 33,400 $332,100 192,600 2,600 $299, 300 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $512,300 Cost of goods sold 329,700 Gross profit 182,600 Operating expenses Depreciation expense $39,400 Other expenses 93,500 132,900 Income before taxes 49,700 Income taxes expense 18,100 Net income $ 31,600 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 Adjustments to reconcile net income to operating cash flow Income statement items not affecting cash Changes in current operating assets and liabilities Furniture costing $77,500 is sold at its book value in 2017. Acquisitions of furniture total $63,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture? Furniture Beg. bal. End. bal. Accumulated Depreciation Beg. bal. End. bal. Cost Accumulated depreciation Book value (Cash received) 1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2017? 2. Assume that no additional notes payable are issued in 2017. What cash amount is paid to reduce the notes payable balance in 2017? Retained Earnings Beg. bal. End. bal. Notes Payable Beg. bal. End. bal. 1. How much cash is received from sales to customers for year 2017? Accounts Receivable Beg. bal. End. bal. 2. What is the net increase or decrease in cash for year 2017? 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 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