In: Accounting
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 | $ | 94,800 | $ | 24,000 | |||
Accounts receivable, net | 41,000 | 51,000 | |||||
Inventory | 85,800 | 95,800 | |||||
Prepaid expenses | 5,400 | 4,200 | |||||
Total current assets | 227,000 | 175,000 | |||||
Furniture | 109,000 | 119,000 | |||||
Accum. depreciation—Furniture | (17,000 | ) | (9,000 | ) | |||
Total assets | $ | 319,000 | $ | 285,000 | |||
Liabilities and Equity | |||||||
Accounts payable | $ | 15,000 | $ | 21,000 | |||
Wages payable | 9,000 | 5,000 | |||||
Income taxes payable | 1,400 | 2,600 | |||||
Total current liabilities | 25,400 | 28,600 | |||||
Notes payable (long-term) | 29,000 | 69,000 | |||||
Total liabilities | 54,400 | 97,600 | |||||
Equity | |||||||
Common stock, $5 par value | 229,000 | 179,000 | |||||
Retained earnings | 35,600 | 8,400 | |||||
Total liabilities and equity | $ | 319,000 | $ | 285,000 | |||
CRUZ, INC. Income Statement For Year Ended December 31, 2017 |
||||||
Sales | $ | 488,000 | ||||
Cost of goods sold | 314,000 | |||||
Gross profit | 174,000 | |||||
Operating expenses | ||||||
Depreciation expense | $ | 37,600 | ||||
Other expenses | 89,100 | 126,700 | ||||
Income before taxes | 47,300 | |||||
Income taxes expense | 17,300 | |||||
Net income | $ | 30,000 | ||||
QS 12-15B Direct: Computing operating cash outflows LO P5
1. How much cash is paid to acquire inventory
during year 2017?
2. How much cash is paid for "other expenses"
during year 2017? (Hint: Examine prepaid expenses and
wages payable.)
QS 12-15B Direct: Computing operating cash outflows LO P5
1. How much cash is paid to acquire inventory
during year 2017?
2. How much cash is paid for "other expenses"
during year 2017? (Hint: Examine prepaid expenses and
wages payable.)
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.)