QS 12-7 Indirect: Computing cash from operations LO P2 A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 2018 Assets Cash $ 73,200 $ 18,300 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 31,400 38,800 65,700 72,800 4,100 3,300 174,400 133,200 82,700 93,500 (12,800) (7,100) $244,300 $219,600 $ 11,500 $ 16,200 6,800 3,800 1,100 2,100 19,400 22,100 22,700 55,700 42,100 77,800 173,100 134,500 29,100 7,300 Total liabilities and equity $244,300 $219,600 CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Income before taxes Income taxes expense Net income $375,900 241,900 134,000 $28,900 68,600 97,500 36,500 13,300 $ 23,200