Use the indirect method to prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)

A comparative balance sheet and income statement is shown for Cruz, Inc. 2018 CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 Assets Cash $ 62,700 Accounts receivable, net 27,000 Inventory 56,600 Prepaid expenses 3,500 Total current assets 149,800 Furniture 70,500 Accum. depreciation-Furniture (10,900) Total assets $209,400 Liabilities and Equity Accounts payable $ 9,900 Wages payable 5,900 Income taxes payable 1,000 Total current liabilities 16,800 Notes payable (long-term) 20,700 Total liabilities 37,500 Equity Common stock, $5 par value 152,200 Retained earnings 19,700 Total liabilities and equity $209,400 $ 15,700 33,300 62,500 2,900 114,400 82,200 (6,200) $190,400 $ 14,000 3,300 1,800 19, 100 47,800 66,900 123,000 500 $190,400 $ 62,700 27,000 56,600 3,500 149,800 70,500 (10,900) $209,400 $ 15,700 33,300 62,500 2,900 114,400 82,200 (6,200) $190,400 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accum. 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 9,900 5,900 1,000 16,800 20,700 37,500 $ 14,000 3,300 1,800 19, 100 47,800 66,900 152,200 19,700 $209,400 123,000 500 $190,400 CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales $326,000 Cost of goods sold 209,800 Gross profit 116,200 Operating expenses Depreciation expense $25,100 Other expenses 59,500 84,600 Income before taxes 31,600 Income taxes expense 11,500 Net income $ 20,100 Required: Use the indirect method to prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities Adjustments to reconcile net income to operating cash flow Income statement items not affecting cash Changes in current operating assets and liabilities