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QS 16-27B Direct: Computing cash from operations LO P5 CRUZ, INC. Comparative Balance Sheets December 31,...

QS 16-27B Direct: Computing cash from operations LO P5

CRUZ, INC.
Comparative Balance Sheets
December 31, 2019
2019 2018
Assets
Cash $ 72,900 $ 18,100
Accounts receivable, net 31,300 38,400
Inventory 65,600 72,100
Prepaid expenses 4,000 3,300
Total current assets 173,800 131,900
Furniture 80,600 93,500
Accum. depreciation—Furniture (12,500 ) (7,100 )
Total assets $ 241,900 $ 218,300
Liabilities and Equity
Accounts payable $ 11,400 $ 16,100
Wages payable 6,800 3,800
Income taxes payable 1,200 2,100
Total current liabilities 19,400 22,000
Notes payable (long-term) 24,800 55,800
Total liabilities 44,200 77,800
Equity
Common stock, $5 par value 170,300 134,800
Retained earnings 27,400 5,700
Total liabilities and equity $ 241,900 $ 218,300

   

CRUZ, INC.
Income Statement
For Year Ended December 31, 2019
Sales $ 373,800
Cost of goods sold 240,600
Gross profit 133,200
Operating expenses
Depreciation expense $ 28,800
Other expenses 68,300 97,100
Income before taxes 36,100
Income taxes expense 13,100
Net income $ 23,000

  
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. (Amounts to be deducted should be indicated with a minus sign.)
  

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