Required information

Use the following information for the Quick Study below.

[The following information applies to the questions displayed below.]

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

CRUZ, INC. Comparative Balance Sheets December 31, 2017
		2017				2016
Assets
Cash	$	99,000			$	25,000
Accounts receivable, net		42,800				53,100
Inventory		89,600				99,700
Prepaid expenses		5,600				4,400
Total current assets		237,000				182,200
Furniture		113,000				124,700
Accum. depreciationFurniture		(17,600	)			(9,400	)
Total assets	$	332,400			$	297,500
Liabilities and Equity
Accounts payable	$	15,600			$	21,900
Wages payable		9,400				5,200
Income taxes payable		1,500				2,700
Total current liabilities		26,500				29,800
Notes payable (long-term)		31,100				65,700
Total liabilities		57,600				95,500
Equity
Common stock, $5 par value		238,600				190,000
Retained earnings		36,200				12,000
Total liabilities and equity	$	332,400			$	297,500

CRUZ, INC. Income Statement For Year Ended December 31, 2017

Sales $509,400

Cost of goods sold 327,800

Gross profit 181,600

Operating expenses

Depreciation expense$39,200

Other expenses 92,900 132,100

Income before taxes 49,500

Income taxes expense 18,100

Net income $31,400

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.)

QS 12-12 Computing cash from asset sales LO P3

Furniture costing $57,700 is sold at its book value in 2017. Acquisitions of furniture total $46,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture?

Cash flows from operating activities
Adjustments to reconcile net income to operating cash flow
Income statement items not affecting cash
Changes in current operating assets and liabilities
Accounts payable decrease
		0
		$0

QS 12-12 Computing cash from asset sales LO P3

Furniture costing $57,700 is sold at its book value in 2017. Acquisitions of furniture total $46,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture?

Furniture
Beg. bal.
End. bal.	0
Accumulated Depreciation
Beg. bal.
End. bal.	0
Cost
Accumulated depreciation
Book value (Cash received)		$0