A comparative balance sheet and income statement is shown for Cruz, Inc CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 2018 Assets Cash $ 85,600 $ 21,300 Accounts receivable, net 36,800 45,200 Inventory 77,100 84,900 Prepaid expenses 4,700 3,900 Total current assets 204, 200 155,300 Furniture 94,700 110,500 Accum. depreciation-Furniture (14,700) (8,400) Total assets $ 284,200 $257,400 Liabilities and Equity Accounts payable $ 13, 400 $ 19,000 Wages payable 8,000 4,500 Income taxes payable 1,400 2,500 Total current liabilities 22,800 26,000 Notes payable (long-term) 28,900 66,400 Total liabilities 51,700 92,400 Equity Common stock, $5 par value 204,000 162,300 Retained earnings 28,500 2,700 Total liabilities and equity $284,200 $257,400 5 CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales $440,700 Cost of goods sold 283,700 wa VIVU w..... Retained earnings Total liabilities and equity 28,500 $ 284,200 u-uum 2,700 $257,400 -46:24 CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales $440,700 Cost of goods sold 283,700 Gross profit 157,000 Operating expenses Depreciation expense $33,900 Other expenses 80,400 114,300 Income before taxes 42,700 Income taxes expense 15,500 Net income $ 27, 200 pok int rint rences Required: Use the indirect method to prepare the operating activities section of the should be indicated with a minus sign.) Required: Use the indirect method to prepare the operating activities section of the statement of cash flows. (Am 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