! Required information Use the following information for the Quick Study below. (Algo) [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 2021 2020 Assets Cash Accounts receivable, net $ 73,200 31,400 $ 18,300 38,800 Inventory 65,700 72,800 Prepaid expenses 4,100 3,300 Total current assets 174,400 133,200 Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable 82,700 (12,800) $ 244,300 $ 11,500 6,800 $ 219,600 93,500 (7,100) $ 16,200 3,800 Income taxes payable 1,100 2,100 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 19,400 22,100 22,700 55,700 42,100 77,800 173,100 134,500 29,100 7,300 Total liabilities and equity $ 244,300 $ 219,600 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 375,900 241,900 134,000 68,600 28,900 36,500 13,300 $ 23,200 QS 12-27B (Algo) Direct: Computing operating cash outflows LO P5 1. How much cash is paid to acquire inventory during year 2021? 2. How much cash is paid for operating expenses (excluding depreciation) during year 2021? Hint: Examine prepaid expenses and wages payable. 1. Cash paid for inventory 2. Cash paid for operating expenses