Required information Use the following information for the Quick Study below. (Algo) [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 Accounts payable Wages payable $ 295,600 2021 2020 $ 89,000 38,200 80,000 $ 22,100 46,900 88,000 4,900 4,000 212,100 98,800 (15,300) $ 265,700 161,000 113,300 (8,600) $ 13,900 $ 19,600 8,200 4,600 Income taxes payable 1,400 2,600 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 23,500 26,800 28,900 69,000 52,400 95,800 215,000 28,200 169,100 800 Total liabilities and equity $ 295,600 $ 265,700 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales. Cost of goods sold $454,900 292,800 162,100 Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 83,000 35,000 44,100 16,000 $28,100 QS 16-28B (Algo) Direct: Computing cash from operations LO P5 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 Cash received from dividends $ 463,600 290,500 Payments for inventory Payments for taxes Payments for other expenses Net cash provided by operating activities $ 754,100