In: Accounting
QS 16-27B Direct: Computing cash from operations LO P5
CRUZ, INC. Comparative Balance Sheets December 31, 2019 |
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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 |
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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.)