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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education