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 Accounts receivable, net $ 89,000 38,200 Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable 80,000 $ 22,100 46,900 88,000 4,900 4,000 212,100 161,000 98,800 (15,300) $ 295,600 $ 13,900 8,200 $ 265,700 $ 19,600 113,300 (8,600) Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 4,600 1,400 2,600 23,500 26,800 28,900 69,000 52,400 95,800 215,000 28,200 169,100 800 $ 295,600 $ 265,700 Total liabilities and equity 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 Required: $ 454,900 292,800 162,100 83,000 35,000 44,100 16,000 $ 28,100