HOW TO DO THIS QUESTION?

Required Information Use the following information for the Quick Study below. The following information apolles 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 $ 62,800 $ 15,700 27,000 33,300 56,600 62,500 3,500 2,900 149,900 114,400 70,500 82,200 (10 900) (6,200) $209,500 $190,400 Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accum. 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 $ 9,900 5,900 1,000 16,800 20,700 37,500 $ 14,000 3,300 1,800 19, 100 47,800 66,900 150,000 121,000 22,000 2,500 $209,500 $190,400 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $326,000 Cost of goods sold 209,800 Gross profit 116,200 Operating expenses Depreciation expense $25,100 Other expenses 59,500 84,600 Income before taxes 31,600