A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATEDComparative Balance SheetsAt December 3120212020Assets Cash$ 89,000$ 22,100Accounts receivable, net38,20046,900Inventory80,00088,000Prepaid expenses4,9004,000Total current assets212,100161,000Furniture98,800113,300Accumulated depreciation—Furniture(15,300)(8,600)Total assets$ 295,600$ 265,700Liabilities and Equity Accounts payable$ 13,900$ 19,600Wages payable8,2004,600Income taxes payable1,4002,600Total current liabilities23,50026,800Notes payable (long-term)28,90069,000Total liabilities52,40095,800Equity Common stock, $5 par value215,000169,100Retained earnings28,200800Total liabilities and equity$ 295,600$ 265,700 CRUZ, INCORPORATEDIncome StatementFor Year Ended December 31, 2021Sales$ 454,900Cost of goods sold292,800Gross profit162,100Operating expenses (excluding depreciation)83,000Depreciation expense35,000Income before taxes44,100Income taxes expense16,000Net income$ 28,100 1. How much cash is paid to acquire inventory during year 2021?2. How much cash is paid for operating expenses (excluding depreciation) during year 2021? Hint: Examine prepaid expenses and wages payable.

Cash Paid to Acquire Inventory = Cost of Goods Sold + Decrease Accounts Payable - Decrease Inventory…

Answered: 1. How much cash is paid to acquire…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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	$ 89,000	$ 22,100
Accounts receivable, net	38,200	46,900
Inventory	80,000	88,000
Prepaid expenses	4,900	4,000
Total current assets	212,100	161,000
Furniture	98,800	113,300
Accumulated depreciation—Furniture	(15,300)	(8,600)
Total assets	$ 295,600	$ 265,700
Liabilities and Equity
Accounts payable	$ 13,900	$ 19,600
Wages payable	8,200	4,600
Income taxes payable	1,400	2,600
Total current liabilities	23,500	26,800
Notes payable (long-term)	28,900	69,000
Total liabilities	52,400	95,800
Equity
Common stock, $5 par value	215,000	169,100
Retained earnings	28,200	800
Total liabilities and equity	$ 295,600	$ 265,700

CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
Sales	$ 454,900
Cost of goods sold	292,800
Gross profit	162,100
Operating expenses (excluding depreciation)	83,000
Depreciation expense	35,000
Income before taxes	44,100
Income taxes expense	16,000
Net income	$ 28,100

1. How much cash is paid to acquire inventory during year 2021?
2. How much cash is paid for operating expenses (excluding depreciation) during year 2021? Hint: Examine prepaid expenses and wages payable.

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Accounts Receivable
Beginning balance



Ending Balance	0

What is the net increase or decrease in the Cash account for year 2021?

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