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 2021 2020 $ 64,400 27,800 $ 16,200 34,400 58,200 64,600 3,600 2,900 154,000 118,100 Accounts payable Wages payable Income taxes payable 72,600 (11,300) $ 215,300 $ 10,100 6,100 82,200 (6,200) $ 194,100 $ 14,300 3,400 1,000 1,800 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 17,200 19,500 20,700 47,800 37,900 67,300 154,500 124,000 22,900 2,800 Total liabilities and equity $ 215,300 $ 194,100 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 332,400 213,900 118,500 60,700 25,600 32,200 11,800 $ 20,400 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