Required information Use the following information for the Quick Study below. A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 2016 Assets Cash $ 94,800 $ 24,000 Accounts receivable, net 41,000 51,000 Inventory 85,800 95,800 Prepaid expenses 5,400 4,200 Total current assets 227,000 175,000 Furniture 109,000 119,000 Accum. depreciation-Furniture (17,000) (9,000) Total assets $319,000 $285,000 Liabilities and Equity Accounts payable $ 15,000 $ 21,000 Wages payable 9,000 5,000 Income taxes payable 1,400 2,600 Total current liabilities 25,400 28,600 Notes payable (long-term) 29,000 69,000 Total liabilities 54,400 97,600 Equity Common stock, $5 par value 229,000 179,000 Retained earnings 35,600 8,400 Total liabilities and equity $319,000 $285,000 $ 30,000 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 $ 37,600 10,000 (1,200) (6,000) 4,000 (1,200) (2,600) 0 40,600 70,600 $