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 $ 75,900 32,600 68,300 4,200 181,000 84,600 (13, 100) $252,500 $ 18,900 40,100 75,300 3,500 137,800 99,200 (7,500) $229,500 Assets Cash 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 $ 11,900 7,100 1,200 20, 200 24,800 45 , $ 16,900 4,000 2,200 23,100 58,400 81,500 177,300 30, 200 $252,500 141,500 6,500 $229,500 CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales $392,900 rnet of onnde anld 252.900 Prev search HI JL. Jdement of cash Hows (with extra points) Seved CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales $392,900 Cost of goods sold 252.900 Gross profit 140,000 Operating expenses Depreciation expense $30, 200 Other expenses 71,600 101, Bee Income before taxes 38,200 Income taxes expense 13,900 Net income $ 24,300 Required: Use the indirect method to prepare the operating activities section of the statement of cas be indicated with a minus sign.) Cash flows from operating activities Adjustments to reconcile net income to operating cash flow Income statement items not affecting cash Changes in Current operating assets and liabilities Prev 1 of 6 HE to search ORI g