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QS 12-7 (Algo) Indirect: Computing cash from operations LO P2 A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash $ 69,200 $ 17,200 Accounts receivable, net 29, 700 36,500 Inventory 62,200 68,500 Prepaid expenses 3,800 3,100 Total current assets 164,900 125,300 Furniture 76,600 87,800 Accumulated depreciation-Furniture (11,900) (6,700) Total assets $ 229,600 $ 206,400 Liabilities and Equity Accounts payable $ 10,800 $ 15,200 Wages payable 6,400 3,600 Income taxes payable 1,100 2,000 Total current liabilities 18,300 20,800 Notes payable (long-term) 22,700 53,100 Total liabilities 41,000 73,900 Equity Common stock, $5 par value 162,900 127,800 Retained earnings 25,700 4,700 Total liabilities and equity $ 229,600 $ 206,400 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales $ 353,400 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 Income taxes expense Net income $ 353,400 227,500 125,900 64,500 27,200 34,200 12,400 $ 21,800 Required: Use the Indirect method to prepare the operating activities section of Cruz's 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 net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and abilities