Saved 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 $ 89,000 $ 22,100 Accounts receivable, net 38,200 46,900 Inventory 80,000 88,000 Prepaid expenses 4.900 4,080 Total current assets 212,100 161,000 Furniture 98,800 113,300 Accum. depreciation-Furniture (15,300) (8,600) Total assets $ 295,600 $ 265,780 Liabilities and Equity Accounts payable S 13,900 $ 19,600 Wages payable 8,200 4,600 Income taxes payable | 1,480 2,600 Total current liabilities 23,500 25,800 Notes payable long-term) 28,900 69,000 Total liabilities 52,400 95,800 Equity Common stock, 5 par value 215,900169,100 CE Prev 10 11 14 of 14 ... wu WIELKI 2016 CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 Assets Cash $ 89,000 Accounts receivable, net 38,200 Inventory 80,000 Prepaid expenses 4,900 Total current assets 212,100 Furniture 98,800 Accum. depreciation-Furniture (15,300) Total assets $ 295,600 Liabilities and Equity Accounts payable $ 13,900 Wages payable 8,200 Income taxes payable 1,480 Total current liabilities 23,500 Notes payable (long-term) 28,960 Total liabilities 52,400 Equity Common stock, $5 par value 215,082 Retained earnings 28, 200 Total liabilities and equity $ 295,600 $ 22,100 46,900 88,000 4,000 161,000 113,300 (8,600) $265,700 $ 19,600 4,600 2,600 26,888 5S , 95,888 169,180 SO $ 265.70 CRUZ, INC. CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $454,900 Cost of goods sold 292,800 Gross profit 162,100 Operating expenses Depreciation expense $ 35,000 Other expenses 83,000 118,000 Income before taxes 44,100 Income taxes expense 16,080 Net income $ 28,10 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 VI VNIU Required information Use the indirect method to prepare the cash provided or used from operating activities s this company. (Amounts to be deducted should be indicated with a minus sign.) $ 28,100 $ 35,000 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 Accounts receivable decrease Inventory decrease Prepaid expense increase Accounts payable decrease Wages payable increase Income taxes payable decrease 35,000 63,100 Net cash provided by operating activities $ S Income taxes expense Net income 16,000 $ 28,100 QS 12-14B Direct: Computing cash received from customers LO P5 1. How much cash is received from sales to customers for year 2017? Accounts Receivable Beg. bal End. bal. QS 12-15B Direct: Computing operating cash outflows LO P5 1. How much cash is paid to acquire inventory during year 2017? Cash paid for inventory 2. How much cash is paid for other expenses" during year 2017? (Hint: Examine prepaid expenses and wages payable.) Cash paid for other expenses QS 12-16B Direct: Computing cash from operations LO P5 Use the above balance sheet and income statement to prepare the cash provided (used) from operating activities section by direct method. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities