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 received from sales to customers for year 2021? Assume all the sales were made on credit basis. 2. What is the net increase or decrease in the Cash account for year 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 $ 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 received from sales to customers for year 2021? Assume all the sales were made on credit basis. 2. What is the net increase or decrease in the Cash account for year 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A comparative
| CRUZ, INCORPORATED | ||
| Comparative Balance Sheets | ||
| At December 31 | 2021 | 2020 |
|---|---|---|
| Assets | ||
| Cash | $ 89,000 | $ 22,100 |
| 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 |
| (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 |
| 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 received from sales to customers for year 2021? Assume all the sales were made on credit basis.
2. What is the net increase or decrease in the Cash account for year 2021?
| Accounts Receivable | |||
| Beginning balance | |||
| Ending Balance | 0 |
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