A comparative balance sheet and income statement is shown for Cruz, Incorporated.

ed

2020

CRUZ, INCORPORATED

Comparative Balance Sheets

At December 31

2021

Assets Cash

$ 73,200

Accounts receivable, net

31,400

Inventory Prepaid expenses

65,700

4,100

Total current assets

174,400

Furniture

82,700 (12,800)

Accumulated depreciation-Furniture

Total assets

$244,300

$ 18,300

38,800

72,800

3,300

pok

133,200

93,500 (7,100)

int

$219,600

rint

$11,500

6,800

1,100

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

$16,200

3,800

2,100

22,100

55,700

77,800

19,400

22,700

42,100

173,100

134,500

7,300

29,100

$244,300

$219,600

CRUZ, INCORPORATED

Income Statement For Year Ended December 31, 2021

Sales

Cost of goods sold

Gross profit

Operating expenses (excluding depreciation)

Depreciation expense Income before taxes

$ 375,900

241,900

134,000

68,600

28,900

36,500

13,300

Income taxes expense

Net income

$ 23,200

Required:

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

QS 12-7 (Algo) Indirect: Computing cash from operations LO P2 A comparative balance sheet and income statement is shown for Cruz, Incorporated. Use the indirect method to prepare the operating activities section of Cruz's statement of cash flows. Note: Amounts to be deducted should be indicated with a minus sign. \begin{tabular}{|l|l|l|} \hline Cash flows from operating activities & & \\ \hline Adjustments to reconcile net income to net cash provided by operating activities & & \\ \hline Income statement items not affecting cash & & \\ \hline Changes in current operating assets and liabilities & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular}