Required information

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

CRUZ, INC.

Comparative Balance Sheets

December 31, 201720172016AssetsCash$85,600$21,300Accounts receivable, net36,80045,200Inventory77,10084,900Prepaid expenses4,7003,900Total current assets204,200155,300Furniture94,700110,500Accum. depreciationFurniture(14,700)(8,400)Total assets$284,200$257,400Liabilities and EquityAccounts payable$13,400$19,000Wages payable8,0004,500Income taxes payable1,4002,500Total current liabilities22,80026,000Notes payable (long-term)28,90066,400Total liabilities51,70092,400EquityCommon stock, $5 par value204,000162,300Retained earnings28,5002,700Total liabilities and equity$284,200$257,400

CRUZ, INC.

Income Statement

For Year Ended December 31, 2017Sales$440,700Cost of goods sold283,700Gross profit157,000Operating expensesDepreciation expense$33,900Other expenses80,400114,300Income before taxes42,700Income taxes expense15,500Net income$27,200

Required:

Use the indirect method to prepare the cash provided or used from operating activities section only of the statement of cash flows for this company.(Amounts to be deducted should be indicated with a minus sign.)

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