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. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities $ 0
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. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities $ 0
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 33BE
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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 | $ 66,100 | $ 16,600 |
Accounts receivable, net | 28,500 | 35,200 |
Inventory | 59,700 | 66,100 |
Prepaid expenses | 3,700 | 3,000 |
Total current assets | 158,000 | 120,900 |
Furniture | 74,600 | 85,000 |
(11,600) | (6,400) | |
Total assets | $ 221,000 | $ 199,500 |
Liabilities and Equity | ||
Accounts payable | $ 10,400 | $ 14,700 |
Wages payable | 6,300 | 3,500 |
Income taxes payable | 1,000 | 1,900 |
Total current liabilities | 17,700 | 20,100 |
Notes payable (long-term) | 20,700 | 50,500 |
Total liabilities | 38,400 | 70,600 |
Equity | ||
Common stock, $5 par value | 159,500 | 125,000 |
Retained earnings | 23,100 | 3,900 |
Total liabilities and equity | $ 221,000 | $ 199,500 |
CRUZ, INCORPORATED | |
Income Statement | |
For Year Ended December 31, 2021 | |
Sales | $ 341,600 |
---|---|
Cost of goods sold | 219,800 |
Gross profit | 121,800 |
Operating expenses (excluding depreciation) | 62,400 |
Depreciation expense | 26,300 |
Income before taxes | 33,100 |
Income taxes expense | 12,100 |
Net income | $ 21,000 |
![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.
Note: Amounts to be deducted should be indicated with a minus sign.
Cash flows from operating activities
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc1dbc87c-2169-4896-a66f-9c36d81636e1%2F0b5c92a2-0ac1-4fcf-8fbf-197fa72bc56a%2Fgo3bxta_processed.png&w=3840&q=75)
Transcribed Image Text: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.
Note: Amounts to be deducted should be indicated with a minus sign.
Cash flows from operating activities
$
0
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