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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
Required information
Use the following information for the Quick Study below. (Algo)
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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
- How much cash is paid to acquire inventory during year 2021?
- How much cash is paid for operating expenses (excluding depreciation) during year 2021? Hint: Examine prepaid expenses and wages payable.
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