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Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below] A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 2016 Assets Cash $ 64,300 $ 16,100 Accounts receivable, net 27,600 34,100 Inventory 57,700 64,000 Prepaid expenses 3,600 2,900 Total current assets 153,200 117,100 Furniture 72,600 82,200 Accum. depreciationFurniture (11,200) (6,200) Total assets $214,600 $193,100 Liabilities and Equity Accounts payable $ 10,100 $ 14,200 Wages payable 6,000 3,300 Income taxes payable 1,000 1,800 Total current liabilities 17,100 19,300 Notes payable (long-term) 20,600 47,700 Total liabilities 37,700 67,000 Equity Common stock, $5 par value 154,700 123,700 Retained earnings 22,200 2,400 Total liabilities and equity $214,600 $193,100 CRUZ, INC. CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $330,500 Cost of goods sold 212,700 Gross profit 117,800 Operating expenses Depreciation expense $25,400 other expenses 60,300 85,700 Income before taxes 32,100 Income taxes expense 11,700 Net income $ 20,400 05 12-11 Indirect: Computing cash from operations LO P2 Required: Use the indirect method to prepare the cash provided or used from operating activities section only of the statement of cash flows for this company. (Amounts to be deducted should be indicated with a minus sign.) Cash ows from operating activities Adjustments to reconcile net income to operating cash ow Income statement items not affecting cash Changes in current operating assets and liabilities 05 12-11 Indirect: Computing cash from operations LO P2 Required: Use the indirect method to prepare the cash provided or used from operating activities section only of the statement of cash flo this company. (Amounts to be deducted should be indicated with a minus sign.) Cash ows from operating activities Adjustments to reconcile net income to operating cash ow Income statement items not affecting cash Changes in current operating assets and liabilities