QS 12-13 (Algo) Computing cash from asset sales LO P3 CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash 2021 2020 $97,400 $ 24,400 41,800 51,700 Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-furniture Total assets Liabilities and Equity Accounts payable Mages 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 Sales CRUZ, INCORPORATED Income Statement 87,400 5,500 232,100 111,000 (17,200) $ 325,900 $ 15,400 9,200 97,100 4,400 177,600 124,700 (9,400) $ 292,900 $ 21,500 4,900 1,500 2,700 26,100 29,100 30,900 71,600 57,000 100,700 232,600 185,600 36,300 6,600 $292,900 $ 325,900 For Year Ended December 31, 2021 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes) Income taxes expense Net income $ 501,300 322,600 178,700 91,600 38,600 48,500 17,700 530,000 2 Furniture costing $73,700 is sold at its book value in 2021. Acquisitions of furniture total $60,000 cash, on which no depreciation is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture Sales CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 $ 501,300 322,600 178,700 Cost of goods soldi Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 91,600 38,600 48,500 17,700 $ 30,800 Furniture costing $73,700 is sold at its book value in 2021. Acquisitions of furniture total $60,000 cash, on which no depreciation is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture. Beginning balance Ending balance Furniture R Accumulated Depreciation Beginning balance Ending balance Cost Accumulated depreciation Book value (Cash received) 0 $ 0