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 Prepaid expenses Inventory 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 2021 2020 $ 71,600 30,900 $ 18,000 64,700 4,000 38,200 71,700 3,300 171,200 131,200 80,600 (12,500) $ 239,300 $ 11,300 6,800 93,500 (7,000) $ 217,700 $ 16,000 3,800 1,100 2,100 19,200 21,900 22,800 55,800 42,000 77,700 174,100 23,200 Total liabilities and equity $ 239,300 $ 217,700 CRUZ, INCORPORATED Income Statement Common stock, $5 par value Retained earnings 138,700 1,300 For Year Ended December 31, 2021 $ 372,800 239,900 132,900 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 68,100 28,700 36,100 13,200 $ 22,900 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? Hint: Examine prepaid expenses and wages payable. 1. Cash paid for inventory 2. Cash paid for operating expenses 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 Prepaid expenses Inventory 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 2021 2020 $ 71,600 30,900 $ 18,000 64,700 4,000 38,200 71,700 3,300 171,200 131,200 80,600 (12,500) $ 239,300 $ 11,300 6,800 93,500 (7,000) $ 217,700 $ 16,000 3,800 1,100 2,100 19,200 21,900 22,800 55,800 42,000 77,700 174,100 23,200 Total liabilities and equity $ 239,300 $ 217,700 CRUZ, INCORPORATED Income Statement Common stock, $5 par value Retained earnings 138,700 1,300 For Year Ended December 31, 2021 $ 372,800 239,900 132,900 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 68,100 28,700 36,100 13,200 $ 22,900 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? Hint: Examine prepaid expenses and wages payable. 1. Cash paid for inventory 2. Cash paid for operating expenses