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Required Information [The following information applies to the questions displayed below.] A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ,
Required Information [The following information applies to the questions displayed below.] 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 $ 97,400 41,800 87,400 $ 24,400 51,700 97,100 5,500 4,400 232,100 177,600 111,000 (17,200) $ 325,900 124,700 (9,400) $ 292,900 $ 15,400 $ 21,500 9,200 4,900 Income taxes payable 1,500 2,700 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 26,100 29,100 30,900 71,600 57,000 100,700 232,600 36,300 185,600 6,600 Total liabilities and equity $ 325,900 $ 292,900 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Depreciation expense Income before taxes Income taxes expense Net income Operating expenses (excluding depreciation) $ 501,300 322,600 178,700 91,600 38,600 48,500 17,700 $ 30,800 Use the above balance sheet and income statement to prepare the operating activities section by direct method. Assume all the sales were made on credit basis. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities
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