QS 16-7 (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	$ 62,800	$ 15,700
Accounts receivable, net	27,000	33,300
Inventory	56,600	62,500
Prepaid expenses	3,500	2,900
Total current assets	149,900	114,400
Furniture	70,500	82,200
Accumulated depreciationFurniture	(10,900)	(6,200)
Total assets	$ 209,500	$ 190,400
Liabilities and Equity
Accounts payable	$ 9,900	$ 14,000
Wages payable	5,900	3,300
Income taxes payable	1,000	1,800
Total current liabilities	16,800	19,100
Notes payable (long-term)	20,700	47,800
Total liabilities	37,500	66,900
Equity
Common stock, $5 par value	150,000	121,000
Retained earnings	22,000	2,500
Total liabilities and equity	$ 209,500	$ 190,400

CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
Sales	$ 326,000
Cost of goods sold	209,800
Gross profit	116,200
Operating expenses (excluding depreciation)	59,500
Depreciation expense	25,100
Income before taxes	31,600
Income taxes expense	11,500
Net income	$ 20,100

Required:

Use the indirect method to prepare the operating activities section of Cruzs statement of cash flows.

Note: Amounts to be deducted should be indicated with a minus sign.