QS 12-7 Indirect: Computing cash from operations LO P2 A comparative balance sheet and income statement is shown Cruz, Inc. 2018 CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 Assets Cash $ 63,600 Accounts receivable, net 27,400 Inventory 57,400 Prepaid expenses 3,500 Total current assets 151,900 Furniture 70,500 Accum. depreciation-Furniture (10,900) Total assets $211,500 Liabilities and Equity Accounts payable $ 10,000 Wages payable 6,000 Income taxes payable 1,000 Total current liabilities 17,000 Notes payable (long-term) 20,700 Total liabilities 37,700 Equity Common stock, $5 par value 153,600 Retained earnings 20,200 Total liabilities and equity $211,500 $ 15,900 33,700 63,300 2,900 115,800 82,200 (6,200) $191,800 $ 14,100 3,300 1,800 19,200 47,800 67,000 124,000 800 $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 indirect method to prepare the operating activities section of the statement of cash flows. (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