QS 12-7 Indirect: Computing cash from operations LO P2 A comparative balance sheet and income statement is shown for Cruz, Inc. 2018 CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 Assets Cash $ 69,200 Accounts receivable, net 29,700 Inventory 62,200 Prepaid expenses 3,800 Total current assets 164,900 Furniture 76,600 Accum. depreciation-Furniture (11,900) Total assets $229,600 Liabilities and Equity Accounts payable $ 10,800 Wages payable 6,400 Income taxes payable 1,100 Total current liabilities 18,300 Notes payable (long-term) 22,700 Total liabilities 41,000 Equity Common stock, $5 par value 162,900 Retained earnings 25,700 Total liabilities and equity $229,600 $ 17,200 36,500 68,500 3,100 125,300 87,800 (6,700) $206,400 $ 15,200 3,600 2,000 20,800 53, 100 73,900 127,800 4,700 $206,400 CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales $353,400 Cost of goods sold 227,500 Gross profit 125,900 Operating expenses Depreciation expense $27,200 Other expenses 64,500 91,700 Income before taxes 34,200 For Year Ended December 31, 2019 Sales $353,400 Cost of goods sold 227,500 Gross profit 125,900 Operating expenses Depreciation expense $27,200 Other expenses 64,500 91,700 Income before taxes 34,200 Income taxes expense 12,400 Net income $ 21,800 Required: Use the indirect method to prepare the operating activities section of the 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 operating cash flow Income statement items not affecting cash Changes in current operating assets and liabilities 0 $ 0