QS 16-7 (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 Inventory Prepaid expenses Total current assets Furniture Accumulated 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 2021 2020 $ 97,400 $ 24,400 41,800 51,700 87,400 97,100 5,500 4,400 232,100 177,600 111,000 124,700 (17,200) (9,400) 325,900 $ 292,900 $ 15,400 $ 21,500 9,200 4,900 1,500 2,700 26,100 29,100 30,900 21,600 57,000 100,700 232,600 185,600 36,300 6,600 $ 325,900 $ 292,900 Sales CRUZ, INCORPORATED Income Statement 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 Required: $ 501,300 322,600 178,700 91,600 38,600 48,500 17,700 $ 30,800 Required: Use the indirect method to prepare the operating activities section of Cruz's statement of cash flows. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities ok sk Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash int Depreciation ences Changes in current operating assets and liabilities Accounts receivable decrease Inventory decrease Accounts payable decrease $ 38,600 9,900 (9,700) (6,100) $ 30,800 32,700 $ 63,500