A comparative balance sheet and income statement is shown for Cruz, Inc. 2018 CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 Assets Cash $ 97,400 Accounts receivable, net 41,800 Inventory 87,400 Prepaid expenses 5,500 Total current assets 232, 100 Furniture 111,000 Accum. depreciation-Furniture (17,200) Total assets $325,900 Liabilities and Equity Accounts payable $ 15,400 Wages payable 9,200 Income taxes payable 1,500 Total current liabilities 26,100 Notes payable (long-term) 30,900 Total liabilities 57,000 Equity Common stock, $5 par value 232,600 Retained earnings 36,300 Total liabilities and equity $325, 900 $ 24,400 51,700 97,100 4,400 177,600 124,700 (9,400) $ 292,900 $ 21,500 4,900 2,700 29,100 71,600 100, 700 185,600 6,600 $292,900 CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales $501,300 Cost of goods sold 322,600 Gross profit 178,700 Operating expenses Depreciation expense $38,600 Other expenses 91,600 130,200 Income before taxes 48,500 Income taxes expense 17,700 Net income $ 30,800 Use the indirect method to prepare the operating activities section of the statement of cash flows. (Amounts to be deducted 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