Required Information [The following information applies to the questions displayed below.] A comparative balance sheet and...

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Required Information [The following information applies to the questions displayed below.] A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Prepaid expenses Inventory Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable 2021 2020 $ 71,600 30,900 $ 18,000 64,700 38,200 71,700 4,000 3,300 131,200 171,200 80,600 (12,500) $ 239,300 $ 11,300 6,800 93,500 (7,000) $ 217,700 $ 16,000 3,800 2,100 Income taxes payable 1,100 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 19,200 21,900 22,800 55,800 42,000 77,700 174,100 23,200 138,700 1,300 Total liabilities and equity $ 239,300 $ 217,700 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) $ 372,800 239,900 132,900 Depreciation expense Income before taxes Income taxes expense Net income 68,100 28,700 36,100 13,200 $ 22,900 Use the above balance sheet and income statement to prepare the operating activities section by direct method. Assume all the sales were made on credit basis. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities Required Information [The following information applies to the questions displayed below.] A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Prepaid expenses Inventory Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable 2021 2020 $ 71,600 30,900 $ 18,000 64,700 38,200 71,700 4,000 3,300 131,200 171,200 80,600 (12,500) $ 239,300 $ 11,300 6,800 93,500 (7,000) $ 217,700 $ 16,000 3,800 2,100 Income taxes payable 1,100 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 19,200 21,900 22,800 55,800 42,000 77,700 174,100 23,200 138,700 1,300 Total liabilities and equity $ 239,300 $ 217,700 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) $ 372,800 239,900 132,900 Depreciation expense Income before taxes Income taxes expense Net income 68,100 28,700 36,100 13,200 $ 22,900 Use the above balance sheet and income statement to prepare the operating activities section by direct method. Assume all the sales were made on credit basis. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities