S 12-7 (Static) Indirect: Computing cash from operations LO P2 A comparative balance sheet and income statement is shown for Cruz, Incorporated CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable. Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity CRUZ, INCORPORATED Income Statement 2021 2020 $ 94,800 41,000 $ 24,000 51,000 85,800 95,800 5,400 4,200 227,000 175,000 109,000 119,000 (17,000) (9,000) $319,000 $285,000 $ 15,000 9,000 1,400 25,400 $ 21,000 5,000 2,600 26,600 29,000 69,000 54,400 97,600 229,000 35.600 $319,000 179,000 8,400 $285,000 For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income Required: $480,000 314,000 174,000 89,100 37,600 47,300 17,300 $30,000 Use the indirect method to prepare the operating activities section of Cruz's statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)