Required information 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 Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accum. depreciation-Furniture Total assets $ 62,700 15,700 33,300 62,500 2,900 114,400 82,200 27,000 56,600 3,500 149,800 70,500 (10,900)(6,200) $209,400 $190,400 Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings $ 9,900 14,000 3,300 1,800 19,100 47,800 66,900 5,900 1,000 16,800 20,700 37,500 152,200 19,700 123,000 500 Total liabilities and equity $209,400 $190,400 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $326,000 209,800 116,200 $25,100 59,500 Depreciation expense Other expenses Income before taxes Incometaxes expense 84,600 31,600 11,500 $ 20,100 Net income