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 2021 2020 $ 89,000 38,200 $ 22,100 46,900 80,000 88,000 4,900 4,000 161,000 $ 295,600 Income taxes payable $ 13,900 8,200 1,400 212,100 98,800 (15,300) 113,300 (8,600) $ 265,700 $ 19,600 4,600 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 $ 454,900 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense. Income before taxes Income taxes expense Net income 292,800 162,100 83,000 35,000 44,100 16,000 $ 28,100