QS 12-7 (Algo) Indirect: Computing cash from operations LO P2 A comparative balance sheet and income...

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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 Balance Sheets At December 31 Assets Cash Accounts receivable, net Prepaid expenses Inventory Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable 2021 2020 $ 99,000 42,800 $ 25,000 53,100 89,600 99,700 5,600 4,400 237,000 182,200 113,000 (17,600) 124,700 (9,400) $ 332,400 $ 15,600 9,400 $ 297,500 $ 21,900 5,200 2,700 Income taxes payable 1,500 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 26,500 29,800 31,100 65,700 57,600 95,500 238,600 190,000 36,200 12,000 Total liabilities and equity $ 332,400 $297,500 CRUZ, INCORPORATED Income Statement. For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 509,400 327,800 181,600 92,900 39,200 49,500 18,100 $ 31,400 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 Assets Cash Accounts receivable, net Prepaid expenses Inventory Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable 2021 2020 $ 99,000 42,800 $ 25,000 53,100 89,600 99,700 5,600 4,400 237,000 182,200 113,000 (17,600) 124,700 (9,400) $ 332,400 $ 15,600 9,400 $ 297,500 $ 21,900 5,200 2,700 Income taxes payable 1,500 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 26,500 29,800 31,100 65,700 57,600 95,500 238,600 190,000 36,200 12,000 Total liabilities and equity $ 332,400 $297,500 CRUZ, INCORPORATED Income Statement. For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 509,400 327,800 181,600 92,900 39,200 49,500 18,100 $ 31,400