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Use the following information for the Quick Study below.

[The following information applies to the questions displayed 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	$	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
Accum. 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, INC. Income Statement For Year Ended December 31, 2017
Sales				$	326,000
Cost of goods sold					209,800
Gross profit					116,200
Operating expenses
Depreciation expense	$	25,100
Other expenses		59,500			84,600
Income before taxes					31,600
Income taxes expense					11,500
Net income				$	20,100

QS 12-11 Indirect: Computing cash from operations LO P2

Required: Use the indirect method to prepare the cash provided or used from operating activities section only of the statement of cash flows for this company. (Amounts to be deducted should be indicated with a minus sign.)

Cash flows from operating activities
Adjustments to reconcile net income to operating cash flow
Income statement items not affecting cash
Changes in current operating assets and liabilities