Refer to the data in QS 16-7.
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? 

Data From QS 16-7

Required

Use the indirect method to prepare the operating activities section of Cruz’s statement of cash flows.

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CRUZ, INC. Comparative Balance Sheets At December 31 2021 2020 Assets Cash ... $ 94,800 $ 24,000 Accounts receivable, net 41,000 51,000 Inventory... 85,800 95,800 Prepaid expenses.. 5,400 4,200 Total current assets 227,000 175,000 Furniture... 109,000 119,000 Accum. depreciation-Furniture .... Total assets.... (17,000) (9,000) $319,000 $285,000 CRUZ, INC. Income Statement Liabilities and Equity Accounts payable.... Wages payable... For Year Ended December 31, 2021 $ 15,000 $ 21,000 9,000 5,000 Sales ..... $488,000 Income taxes payable 1,400 2,600 Cost of goods sold .. Gross profit..... 314,000 Total current liabilities 25,400 28,600 174,000 Notes payable (long-term)........ Total liabilities.... 29,000 69,000 Operating expenses (excluding depreciation) 54,400 97,600 89,100 ..... Depreciation expense 37,600 Equity ... ... Common stock, $5 par value....... Retained earnings ... Total liabilities and equity.... Income before taxes.. 47,300 229,000 179,000 Income taxes expense.. 17,300 35,600 8,400 Net income .. $ 30,000 $319,000 $285,000