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

CRUZ, INCORPORATED
Comparative Balance Sheets
At December 31	2021	2020
Assets
Cash	$ 71,600	$ 18,000
Accounts receivable, net	30,900	38,200
Inventory	64,700	71,700
Prepaid expenses	4,000	3,300
Total current assets	171,200	131,200
Furniture	80,600	93,500
Accumulated depreciationFurniture	(12,500)	(7,000)
Total assets	$ 239,300	$ 217,700
Liabilities and Equity
Accounts payable	$ 11,300	$ 16,000
Wages payable	6,800	3,800
Income taxes payable	1,100	2,100
Total current liabilities	19,200	21,900
Notes payable (long-term)	22,800	55,800
Total liabilities	42,000	77,700
Equity
Common stock, $5 par value	174,100	138,700
Retained earnings	23,200	1,300
Total liabilities and equity	$ 239,300	$ 217,700

CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
Sales	$ 372,800
Cost of goods sold	239,900
Gross profit	132,900
Operating expenses (excluding depreciation)	68,100
Depreciation expense	28,700
Income before taxes	36,100
Income taxes expense	13,200
Net income	$ 22,900

QS 12-28B (Algo) Direct: Computing cash from operations LO P5

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.