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 Assets Cash $ 72,900 Accounts receivable, net 31,300 Inventory 65,600 Prepaid expenses 4,000 Total current assets 173, 800 Furniture 80,600 Accum. depreciation-Furniture (12,500) Total assets $241,900 Liabilities and Equity Accounts payable $ 11,400 Wages payable 6,800 Income taxes payable 1,200 Total current liabilities 19,400 Notes payable (long-term) 24,800 Total liabilities 44,200 Equity Common stock, $5 par value 170,300 Retained earnings 27,400 Total liabilities and equity $241,900 $ 18,100 38,400 72,100 3,300 131,900 93,500 (7,100) $218,300 $ 16,100 3,800 2,100 22,000 55,800 77,800 134,800 5,700 $218,300 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $373,800 Cost of goods sold 240, 600 Gross profit 133,200 Operating expenses Depreciation expense $ 28,800 Other expenses 68,300 97,100 Income before taxes 36,100 Income taxes expense 13,100 Net income $ 23,000 Furniture costing $67,900 is sold at its book value in 2017. Acquisitions of furniture total $55,000 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. Accumulated Depreciation Beg. bal. End. bal. Cost Accumulated depreciation 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? 2. Assume that no additional notes payable are issued in 2017. What cash amount is paid to reduce the notes payable balance in 2017? Retained Earnings Beg. bal. End. bal. Notes Payable Beg. bal. End. bal. 1. How much cash is received from sales to customers for year 2017? Accounts Receivable Beg. bal. End. bal. 2. What is the net increase or decrease in cash for year 2017? QS 12-15B Direct: Computing operating cash outflows LO P5 1. How much cash is paid to acquire inventory during year 2017? Cash paid for inventory 2. How much cash is paid for "other expenses" during year 2017? (Hint: Examine prepaid expenses and wages payable.) Cash paid for other expenses Use the above balance sheet and income statement to prepare the cash provided (used) from operating activities section by direct method. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities