Question

In: Accounting

Use the following information for the Quick Study below. [The following information applies to the questions...

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.)
  

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