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A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash $ 18,300 $ 73,200 31,400 Accounts receivable, net 38,800 Inventory 65,700 72,800 Prepaid expenses 4,100 3,300 Total current assets 174,400 133,200 Furniture 82,700 93,500 Accumulated depreciation-Furniture (12,800) (7,100) Total assets $ 244,300 $ 219,600 Liabilities and Equity Accounts payable Wages payable $ 11,500 $ 16,200 6,800 3,800 Income taxes payable 1,100 2,100 Total current liabilities 19,400 22,100 22,700 55,700 Notes payable (long-term) Total liabilities 42,100 77,800 Equity 134,500 Common stock, $5 par value Retained earnings 173, 100 29,100 7,300 Total liabilities and equity $ 244,300 $ 219,600 Sales $375,900 241,900 Cost of goods sold Gross profit 134,000 Operating expenses (excluding depreciation) 68,600 Depreciation expense 28,900 Income before taxes 36,500 13,300 Income taxes expense Net income $ 23,200 Required: Use the indirect method to prepare the operating activities section of Cruz's statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021

A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash $ 18,300 $ 73,200 31,400 Accounts receivable, net 38,800 Inventory 65,700 72,800 Prepaid expenses 4,100 3,300 Total current assets 174,400 133,200 Furniture 82,700 93,500 Accumulated depreciation-Furniture (12,800) (7,100) Total assets $ 244,300 $ 219,600 Liabilities and Equity Accounts payable Wages payable $ 11,500 $ 16,200 6,800 3,800 Income taxes payable 1,100 2,100 Total current liabilities 19,400 22,100 22,700 55,700 Notes payable (long-term) Total liabilities 42,100 77,800 Equity 134,500 Common stock, $5 par value Retained earnings 173, 100 29,100 7,300 Total liabilities and equity $ 244,300 $ 219,600 Sales $375,900 241,900 Cost of goods sold Gross profit 134,000 Operating expenses (excluding depreciation) 68,600 Depreciation expense 28,900 Income before taxes 36,500 13,300 Income taxes expense Net income $ 23,200 Required: Use the indirect method to prepare the operating activities section of Cruz's statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021

Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement
Section: Chapter Questions
Problem 20P
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A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash $ 18,300 $73,200 31,400 Accounts receivable, net 38,800 Inventory 65,700 72,800 Prepaid expenses 4,100 3,300 Total current assets 174,400 133,200 Furniture 82,700 Accumulated depreciation-Furniture (12,800) Total assets $244,300 Liabilities and Equity Accounts payable Wages payable $ 11,500 6,800 Income taxes payable 1,100 Total current liabilities 19,400 22,700 Notes payable (long-term) Total liabilities 42,100 Equity Common stock, $5 par value 173,100 Retained earnings 29,100 Total liabilities and equity $ 244,300 Sales $375,900 241,900 Cost of goods sold Gross profit 134,000 Operating expenses (excluding depreciation) 68,600 Depreciation expense 28,900 Income before taxes. 36,500 Income taxes expense 13,300 Net income $ 23,200 Required: Use the indirect method to prepare the operating activities section of Cruz's statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 93,500 (7,100) $ 219,600 $ 16,200 3,800 2,100 22,100 55,700 77,800 134,500 7,300 $ 219,600
Transcribed Image Text:A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash $ 18,300 $73,200 31,400 Accounts receivable, net 38,800 Inventory 65,700 72,800 Prepaid expenses 4,100 3,300 Total current assets 174,400 133,200 Furniture 82,700 Accumulated depreciation-Furniture (12,800) Total assets $244,300 Liabilities and Equity Accounts payable Wages payable $ 11,500 6,800 Income taxes payable 1,100 Total current liabilities 19,400 22,700 Notes payable (long-term) Total liabilities 42,100 Equity Common stock, $5 par value 173,100 Retained earnings 29,100 Total liabilities and equity $ 244,300 Sales $375,900 241,900 Cost of goods sold Gross profit 134,000 Operating expenses (excluding depreciation) 68,600 Depreciation expense 28,900 Income before taxes. 36,500 Income taxes expense 13,300 Net income $ 23,200 Required: Use the indirect method to prepare the operating activities section of Cruz's statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 93,500 (7,100) $ 219,600 $ 16,200 3,800 2,100 22,100 55,700 77,800 134,500 7,300 $ 219,600
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