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A comparative balance sheet and income statement is shown for Cruz, Incorporated.

CRUZ, INCORPORATED

Comparative Balance Sheets

At December $3120212020$

Assets

Cash $ $64,400$ $ $16,200$

Accounts receivable, net $27,80034,400$

Inventory $58,20064,600$

Prepaid expenses $3,6002,900$

Total current assets $154,000118,100$

Furniture $72,60082,200$

Accumulated depreciation$$Furniture $(11,300)(6,200)$

Total assets $ $215,300$ $ $194,100$

Liabilities and Equity

Accounts payable $ $10,100$ $ $14,300$

Wages payable $6,1003,400$

Income taxes payable $1,0001,800$

Total current liabilities $17,20019,500$

Notes payable $($long$-$term$)20,70047,800$

Total liabilities $37,90067,300$

Equity

Common stock, $$5$ par value $154,500124,000$

Retained earnings $22,9002,800$

Total liabilities and equity $ $215,300$ $ $194,100$

CRUZ, INCORPORATED

Income Statement

For Year Ended December $31,2021$

Sales $ $332,400$

Cost of goods sold $213,900$

Gross profit $118,500$

Operating expenses $($excluding depreciation$)60,700$

Depreciation expense $25,600$

Income before taxes $32,200$

Income taxes expense $11,800$

Net income $ $20,400$

QS $12-28$B $($Algo$)$ Direct: Computing cash from operations LO P$5$

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.