QS 12-7 Indirect: Computing cash from operations LO P2 A comparative belance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2010 2019 $ $ 21,560 85.900 36,900 77.200 284,900 (35,360) 157.300 110,500 (8.100) $ 259,560 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accu, depreciation Furniture Total assets Liabilities and Equity Accounts payable wages payable Income taxes payable Total current liabilities Notes payable (long.tore) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ $ 19,100 13,600 8,100 25,800 23,600 25.00 49,00 207,600 165.100 $ 259,500 285.900 158,300 CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense 34,200 Other expenses 81,200 Income before taxes Income taxes expense Net income 115.00 42,900 15.600 27,300 Required: Use the indirect method to prepare the operating sctivities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) $ 27,300 S 34.200 Cash flows from operating activities Net income Adjustments to reconcile net income to operating cash flow Income statement items not affecting cash Depreciation Changes in current operating assets and liabilities Accounts receivable decrease Inventory decrease Prepaid expense increase Accounts payable decrease Wages payable increase Income taxes payable decrease 34,200 61,500 Net cash provided by operating activities $