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 Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accum. depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilitien $91,100 22,900 48,600 81,800 91,300 ,100 217,200 166,900 105,000 116,200 39,100 5,200 (16,200) (8,700) $306,000 $274,400 s 14,400 20,200 4,500 8,600 1,4002,500 24,40027,200 28 90066,400 53,30093.600 Equity Common stock, $5 par value 216,400 172,100 36,300 8-700 Retained earnings Total 1iabilities and equity 306,000 $274,400 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $469,700 302,300 167,400 Depreciation expense $36,200 Other expenses Income before taxes Income taxes expense Net income 85,900122,100 45,300 16,500 28,800 QS 12-11 Indirect: Computing cash from operations LO P2 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 wlth a mlnus sign.) Cash flows from operating activities Net income $ 28,800 Adjustments to reconaile net income to oporating cash flow Income statement items not affecting cash 30,200 Changes in current operating assets and liabilitios Accounts receivable decrease Wages payable increase Prepaid expense increase Accounts payable decrease Income taxes payable decrease 36,200 S 65,000 Net cash provided by operating activities QS 12-12 Computing cash from asset sales LO P3 Furniture costing $76,200 is sold at its book value in 2017. Acquisitions of furniture total $65,000 cash, on which no depreclation is cessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture? rniture Beg. bal. End. bal. ted Depreciation Beg. bal. End. bal. Cost Book value (Cash received) Qs 12-13 Computing financing cash outflows LO P3 1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2017 notes payable are Issued in 2017. What cash amount is paid to reduce the notes payable balance in 2017? Retained E Beg. bal. End. bal. Notes Payable Beg. bal End. bal