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, Inc. CRUZ, INC. Comparative Balance Sheets At December 31 2020 2019 Assets Cash $ 82,800 $ 20,600 Accounts receivable, net 35,500 43,700 Inventory 74,300 82,000 Prepaid expenses 4,600 3,700 Total current assets 197,200 150,000 Furniture 92,800 104,800 Accum. depreciation- Furniture (14,400) (8,000) Total assets $275,600 $246, 800 Liabilities and Equity Accounts payable $ 13,000 $ 18, 200 Wages payable 7,700 4,300 Income taxes payable 1,300 2,400 Total current liabilities 22,000 24,900 Notes payable (long- term) 26,800 63,700 Total liabilities 48,800 88,600 Equity Common stock, $5 par value 198,800 155,300 Retained earnings 28,000 2,900 Total liabilities and $275,600 $246,800 equity CRUZ, INC. Income Statement For Year Ended December 31, 2020 Sales $422,500 Cost of goods sold 271, 900 Gross profit 150,600 Operating expenses (excluding depreciation) 77,100 Depreciation expense 32,500 Income before taxes 41,000 Income taxes expense 14,900 Net income $ 26, 100 QS 12-26B (Algo) Direct: Computing cash received from customers LO P5 1. How much cash is received from sales to customers for year 2020? Assume all the sales were made on credit basis. 2. What is the net increase or decrease in the Cash account for year 2020? Complete this question by entering your answers in the tabs below. Required Required 1 2 How much cash is received from sales to customers for year 2020? Assume all the sales were made on credit basis. Accounts Receivable Beg. bal. Sales on account 422,500 0 Cash collections from customers End. bal. 422,500 QS 12-28B (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 Receipts from sales to customers Payments for inventory Payments for other expenses Payments for taxes Net cash provided by operating activities $ 0