QS 12-27B Direct: Computing cash from operations LO P5 CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 2018 $ 63,600 27,400 57,400 3,500 151,900 70,500 (10,900) $211,500 $ 15,900 33,700 63,300 2,900 115,800 82,200 (6,200) $191,800 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 $ 10,000 6,000 1,000 17,000 20,700 37,700 $ 14,100 3,300 1,800 19,200 47,800 67,000 153,600 20,200 $211,500 124,000 800 $191,800 CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales $328,400 Cost of goods sold 211,300 Gross profit 117, 100 Operating expenses Depreciation expense $ 25,300 Other expenses 60,000 85,300 Income before taxes 31,800 Income taxes expense 11,600 Net income $ 20,200 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 Cash received from customers Cash paid for inventory Cash paid for other expenses Cash paid for taxes Net cash provided by operating activities $ 0