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 2021 2020 Assets Cash $ 63,600 Accounts receivable, net $ 15,900 27,400 33,700 Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable: 57,400 63,300 3,500 2,900 151,900 115,800 70,500 (10,900) 82,200 $211,500 $ 10,000 (6,200) $191,800 $ 14,100 6,000 3,300 Income taxes payable 1,000 1,800 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 17,000 19,200 20,700 47,800 37,700 67,000 153,600 124,000 20,200 800 Total liabilities and equity $ 211,500 $191,800 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021) Total current liabilities. Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 33www 17,000 19,200 20,700 47,800 37,700 67,000 153,600 124,000 20,200 $211,500 800 $191,800 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 $ 328,400 211,300 117,100 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 60,000 25,300 31,800 11,600 $ 20,200 1. How much cash is paid to acquire inventory during year 2021? 2. How much cash is paid for operating expenses (excluding depreciation) during year 2021? Hint: Examine prepaid expenses and wages payable. 1. Cash paid for inventory 2. Cash paid for operating expenses