Consider the Comparative Balance Sheets:
  

CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 2018 Assots Cash $ 72,900 $18,100 Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accun. 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 31,300 38,400 65,600 72,100 4,000 3,300 173,800 131,900 80.600 93,500 (12,500) (7,100) $241,900 $218,300 $ 11,400 $ 16,100 6,800 1,200 3,800 2,100 19,400 22,000 24,800 55,800 44,200 77,800 170,300 134,800 27,400 5,700 Total liabilities and equity $241,900 $218,300 CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales $373,800 Cost of goods sold 240,600 Gross profit 133,200 Operating expenses Depreciation 28,800 expense Other expenses 68,300 97,100 Income before taxes 36,100 Income taxes expense 13,100 Net income $ 23,000 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.) Cash flows from operating activities Payments for inventory Payments for other expenses Payments for taxes Receipts from sales to customers Net cash provided by operating activities $ The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit $1,911,000 936,390 974,610 Operating expenses Salaries expense $261,807 Depreciation expense 45,864 Rent expense 51,597 Amortization expenses-Patents Utilities expense 5,733 21,021 386,022 588,588 Gain on sale of equipment Net income 7,644 $ 596,232 Accounts receivable. Inventory $27,050 increase Accounts payable 18,200 increase Salaries payable $15,875 decrease 5,100 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. Statement of Cash Flows (partial) Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventory 23,000 7,100 6,500x $ 36,600