Use the above balance sheet and income statement to prepare the operating activities dection by direct method. Assume all the sales were made in credit bases.

MUITO 2020 CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 Assets Cash $ 85,600 Accounts receivable, net 36,800 Inventory 77,100 Prepaid expenses 4,700 Total current assets 204, 200 Furniture 94,700 Accumulated depreciation Furniture (14,700) Total assets $ 284,200 Liabilities and Equity Accounts payable $ 13,400 Wages payable 8,000 Income taxes payable 1,400 Total current liabilities 22,800 Notes payable (long-term) 28,900 Total liabilities 51,700 Equity Common stock, $5 par value 204,000 Retained earnings 28,500 Total liabilities and equity $ 284,280 $ 21,300 45,200 84,900 3,900 155,300 110,500 (8,400) $ 257,400 $ 19,000 4,500 2,500 26,000 66,400 92,400 162,300 2,700 $ 257,400 CRUZ, INCORPORATED Income Statement 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 $ 440,700 283,780 157,600 80,400 33,900 42,700 15,500 $ 27,200 Use the above balance sheet and income statement to prepare the operating activities section by direct method. Assume were made on credit basis. (Amounts to be deducted should be indicated with a minus sign.) $ Cash flows from operating activities Receipts from sales to customers Payments for inventory Payments for taxes Payments for other expenses 449,100 285.900 $ 735,000