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QS 12-7 (Algo) Indirect: Computing cash from operations LO P2 A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative

QS 12-7 (Algo) Indirect: Computing cash from operations LO P2

A comparative balance sheet and income statement is shown for Cruz, Incorporated.

CRUZ, INCORPORATED
Comparative Balance Sheets
At December 31 2021 2020
Assets
Cash $ 62,800 $ 15,700
Accounts receivable, net 27,000 33,300
Inventory 56,600 62,500
Prepaid expenses 3,500 2,900
Total current assets 149,900 114,400
Furniture 70,500 82,200
Accumulated depreciationFurniture (10,900) (6,200)
Total assets $ 209,500 $ 190,400
Liabilities and Equity
Accounts payable $ 9,900 $ 14,000
Wages payable 5,900 3,300
Income taxes payable 1,000 1,800
Total current liabilities 16,800 19,100
Notes payable (long-term) 20,700 47,800
Total liabilities 37,500 66,900
Equity
Common stock, $5 par value 150,000 121,000
Retained earnings 22,000 2,500
Total liabilities and equity $ 209,500 $ 190,400

CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
Sales $ 326,000
Cost of goods sold 209,800
Gross profit 116,200
Operating expenses (excluding depreciation) 59,500
Depreciation expense 25,100
Income before taxes 31,600
Income taxes expense 11,500
Net income $ 20,100

Use the indirect method to prepare the operating activities section of Cruzs statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)

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