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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	$ 89,000	$ 22,100
Accounts receivable, net	38,200	46,900
Inventory	80,000	88,000
Prepaid expenses	4,900	4,000
Total current assets	212,100	161,000
Furniture	98,800	113,300
Accumulated depreciationFurniture	(15,300)	(8,600)
Total assets	$ 295,600	$ 265,700
Liabilities and Equity
Accounts payable	$ 13,900	$ 19,600
Wages payable	8,200	4,600
Income taxes payable	1,400	2,600
Total current liabilities	23,500	26,800
Notes payable (long-term)	28,900	69,000
Total liabilities	52,400	95,800
Equity
Common stock, $5 par value	215,000	169,100
Retained earnings	28,200	800
Total liabilities and equity	$ 295,600	$ 265,700

CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
Sales	$ 454,900
Cost of goods sold	292,800
Gross profit	162,100
Operating expenses (excluding depreciation)	83,000
Depreciation expense	35,000
Income before taxes	44,100
Income taxes expense	16,000
Net income	$ 28,100

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.)