A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance...
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A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated 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 Sales Cost of goods sold Gross profit 2021 Operating expenses (excluding depreciation) Depreciation expense $ 90,700 38,900 81,300 5,100 216,000 102,900 (15,900) $ 303,000 $ 14,300 8,500 1,400 24,200 28,800 53,000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 215,100 34,900 $ 303,000 2020 $ 22,700 48,100 90,300 4,100 165,200 116, 200 (8,800) $ 272,600 $ 20,000 4,600 2,500 27,100 66,300 93,400 171,900 7,300 $ 272,600 $ 466,600 300,300 166,300 85,200 35.900 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 Cash flows from operating activities Receipts from sales to customer Payments for inventory $ 466,600 300,300 Payments for other expenses Payments for taxes Net cash provided by operating activities 166,300 85,200 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. Note: Amounts to be deducted should be indicated with a minus sign. 35,900 45,200 16,500 $ 28,700 A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated 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 Sales Cost of goods sold Gross profit 2021 Operating expenses (excluding depreciation) Depreciation expense $ 90,700 38,900 81,300 5,100 216,000 102,900 (15,900) $ 303,000 $ 14,300 8,500 1,400 24,200 28,800 53,000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 215,100 34,900 $ 303,000 2020 $ 22,700 48,100 90,300 4,100 165,200 116, 200 (8,800) $ 272,600 $ 20,000 4,600 2,500 27,100 66,300 93,400 171,900 7,300 $ 272,600 $ 466,600 300,300 166,300 85,200 35.900 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 Cash flows from operating activities Receipts from sales to customer Payments for inventory $ 466,600 300,300 Payments for other expenses Payments for taxes Net cash provided by operating activities 166,300 85,200 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. Note: Amounts to be deducted should be indicated with a minus sign. 35,900 45,200 16,500 $ 28,700
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To prepare the operating activities section using the direct method we need to analyze the changes in the current assets and current liabilities from ... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date:
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