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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
[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 Assets Cash Accounts receivable, net 53 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 2021 2020 $ 64,300 27,600 $ 16,100 34,100 57,700 64,000 3,600 2,900 153,200 117,100 72,600 82,200 (11,200) (6,200) $ 214,600 $193,100 $ 10,100 $ 14,200 6,000 3,300 1,000 1,800 17,100 19,300 20,600 47,700 37,700 67,000 154,700 123,700 22,200 2,400 $214,600 $ 193,100 Sales CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 330,500 212,700 117,800 60,300 25,400 32,100 11,700 $ 20,400 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. 1. Cash paid for inventory 2. Cash paid for operating expenses
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