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A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities depreciation-Furniture Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit 2021 $ 85,600 36,800 77,100 4,700 204, 200 94,700 (14,700) $ 284,200 Operating expenses (excluding depreciation) Depreciation expense Income before taxes. Income taxes expense Net income $ 13,400 8,000 CRUZ, INCORPORATED Income statement For Year Ended December 31, 2021 1,400 22,800 28,900 51,700 204,000 28,500 $ 284, 200 2020 $ 21,300 45,200 84,900 3,900 155,300 110,500 (8,400) $ 257,400 $ 19,000 4,500 2,500 26,000 66,400 92,400 162,300 2,700 $ 257,400 $ 440,700 283,700 157,000 80,400 33,900 42,700 15,500 $ 27, 200 Required: Use the Indirect method to prepare the operating activities section of Cruz's statement of cash flows. Note: Amounts to be deducted should be Indicated with a minus sign.

A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities depreciation-Furniture Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit 2021 $ 85,600 36,800 77,100 4,700 204, 200 94,700 (14,700) $ 284,200 Operating expenses (excluding depreciation) Depreciation expense Income before taxes. Income taxes expense Net income $ 13,400 8,000 CRUZ, INCORPORATED Income statement For Year Ended December 31, 2021 1,400 22,800 28,900 51,700 204,000 28,500 $ 284, 200 2020 $ 21,300 45,200 84,900 3,900 155,300 110,500 (8,400) $ 257,400 $ 19,000 4,500 2,500 26,000 66,400 92,400 162,300 2,700 $ 257,400 $ 440,700 283,700 157,000 80,400 33,900 42,700 15,500 $ 27, 200 Required: Use the Indirect method to prepare the operating activities section of Cruz's statement of cash flows. Note: Amounts to be deducted should be Indicated with a minus sign.

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter23A: Statement Of Cash Flows: The Direct Method
Section: Chapter Questions
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QS 12-7 (Algo) Indirect: Computing cash from operations LO P2 A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 2021 $ 85,600 36,800 77,100 4,700 204, 200 94,700 (14,700) $ 284,200 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 $ 13,400 8,000 1,400 22,800 28,900 51,700 204,000 28,500 $ 284,200 2020 $ 21,300 45,200 84,900 3,900 155,300 110,500 (8,400) $ 257,400 $ 19,000 4,500 2,500 26,000 66,400 92,400 162,300 2,700 $ 257,400 $ 440,700 283,700 157,000 80,400 33,900 42,700 15,500 $ 27, 200 Required: Use the Indirect method to prepare the operating activities section of Cruz's statement of cash flows. Note: Amounts to be deducted should be indicated with a minus sign.
Transcribed Image Text:QS 12-7 (Algo) Indirect: Computing cash from operations LO P2 A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 2021 $ 85,600 36,800 77,100 4,700 204, 200 94,700 (14,700) $ 284,200 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 $ 13,400 8,000 1,400 22,800 28,900 51,700 204,000 28,500 $ 284,200 2020 $ 21,300 45,200 84,900 3,900 155,300 110,500 (8,400) $ 257,400 $ 19,000 4,500 2,500 26,000 66,400 92,400 162,300 2,700 $ 257,400 $ 440,700 283,700 157,000 80,400 33,900 42,700 15,500 $ 27, 200 Required: Use the Indirect method to prepare the operating activities section of Cruz's statement of cash flows. Note: Amounts to be deducted should be indicated with a minus sign.
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