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 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 CRUZ, INCORPORATED Income Statement 2021 2020 $ 82,800 35,500 $ 20,600 43,700 74,300 82,000 4,600 3,700 197,200 150,000 92,800 104,800 (14,400) (8,000) $ 275,600 $ 246,800 $ 13,000 $ 18,200 7,700 4,300 1,300 2,400 22,000 24,900 26,800 63,700 48,800 88,600 198,800 155,300 28,000 2,900 $ 275,600 $ 246,800 For Year Ended December 31, 2021 Sales Cost of goods sold $ 422,500 271,900 Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes. Income taxes expense Net income 150,600 77,100 32,500 41,000 14,900 $ 26,100 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. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities $ 0