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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 $ $97,400$ $ $24,400$

Accounts receivable, net $41,80051,700$

Inventory $87,40097,100$

Prepaid expenses $5,5004,400$

Total current assets $232,100177,600$

Furniture $111,000124,700$

Accumulated depreciation$$Furniture $(17,200)(9,400)$

Total assets $ $325,900$ $ $292,900$

Liabilities and Equity

Accounts payable $ $15,400$ $ $21,500$

Wages payable $9,2004,900$

Income taxes payable $1,5002,700$

Total current liabilities $26,10029,100$

Notes payable $($long$-$term$)30,90071,600$

Total liabilities $57,000100,700$

Equity

Common stock, $$5$ par value $232,600185,600$

Retained earnings $36,3006,600$

Total liabilities and equity $ $325,900$ $ $292,900$

CRUZ, INCORPORATED

Income Statement

For Year Ended December $31,2021$

Sales $ $501,300$

Cost of goods sold $322,600$

Gross profit $178,700$

Operating expenses $($excluding depreciation$)91,600$

Depreciation expense $38,600$

Income before taxes $48,500$

Income taxes expense $17,700$

Net income $ $30,800$

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.