QS 12-27B Direct: Computing cash from operations LO P5 2018 CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 Assets Cash $ 99,300 Accounts receivable, net 42,600 Inventory 89, 100 Prepaid expenses 5,600 Total current assets 236,600 Furniture 113,000 Accum. depreciationFurniture (17,500) Total assets $332,100 Liabilities and Equity Accounts payable $ 15,700 Wages payable 9,400 Income taxes payable 1,500 Total current liabilities 26,600 Notes payable (long-term) 30,900 Total liabilities 57,500 Equity Common stock, $5 par value 241,200 Retained earnings 33,400 $332,100 $ 24,900 52,800 99,200 4,500 181,400 127,500 (9,600) $299,300 $ 22,000 5,000 2,800 29,800 74,300 104,100 192,600 2,600 $299, 300 CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales $512,300 Cost of goods sold 329,700 Gross profit 182,600 Operating expenses Depreciation 39,400 expense Other expenses 93,500 132,900 Income before taxes 49,700 Income taxes expense 18,100 Net income $ 31,600 Use the above balance sheet and income statement to prepare the operating activities section by direct method. Assume all the sales were made on credit basis. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities Payments for inventory Payments for other expenses Payments for taxes Net cash provided by operating activities