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Required information Use the following information for the Quick Study below. (Algo) Skip to question [The following information applies to the questions displayed below.] A

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[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 2021 2020
Assets
Cash $ 62,800 $ 15,700
Accounts receivable, net 27,000 33,300
Inventory 56,600 62,500
Prepaid expenses 3,500 2,900
Total current assets 149,900 114,400
Furniture 70,500 82,200
Accumulated depreciationFurniture (10,900) (6,200)
Total assets $ 209,500 $ 190,400
Liabilities and Equity
Accounts payable $ 9,900 $ 14,000
Wages payable 5,900 3,300
Income taxes payable 1,000 1,800
Total current liabilities 16,800 19,100
Notes payable (long-term) 20,700 47,800
Total liabilities 37,500 66,900
Equity
Common stock, $5 par value 150,000 121,000
Retained earnings 22,000 2,500
Total liabilities and equity $ 209,500 $ 190,400
CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
Sales $ 326,000
Cost of goods sold 209,800
Gross profit 116,200
Operating expenses (excluding depreciation) 59,500
Depreciation expense 25,100
Income before taxes 31,600
Income taxes expense 11,500
Net income $ 20,100

QS 16-27B (Algo) Direct: Computing operating cash outflows LO P5

  1. How much cash is paid to acquire inventory during year 2021?
  2. How much cash is paid for operating expenses (excluding depreciation) during year 2021? Hint: Examine prepaid expenses and wages payable.

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