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 2021 $ 90,700 38,900 81,300 5,100 216,000 102,900 (15,900) $ 303,000 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 14,300 8,500 1,400 24,200 28,800 53,000 215, 100 34,900 $ 303,000 CRUZ, INCORPORATED Income statement For Year Ended December 31, 2021 2020 $ 22,700 48,100 90,300 4,100 165,200 116,200 (8,see) $ 272,600 $ 20,000 4,600 2,500 27,100 66,300 93,400 171,900 7,300 $ 272,600 $ 466,600 300, 300 166,300 85,200 35,900 45,200 16,500 $ 28,700 se the above balance sheet and income statement to prepare the operating activities section by direct method. Assume all the sal ere made on credit basis. (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 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 2021 $ 90,700 38,900 81,300 5,100 216,000 102,900 (15,900) $ 303,000 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 14,300 8,500 1,400 24,200 28,800 53,000 215, 100 34,900 $ 303,000 CRUZ, INCORPORATED Income statement For Year Ended December 31, 2021 2020 $ 22,700 48,100 90,300 4,100 165,200 116,200 (8,see) $ 272,600 $ 20,000 4,600 2,500 27,100 66,300 93,400 171,900 7,300 $ 272,600 $ 466,600 300, 300 166,300 85,200 35,900 45,200 16,500 $ 28,700 se the above balance sheet and income statement to prepare the operating activities section by direct method. Assume all the sal ere made on credit basis. (Amounts to be deducted should be indicated with a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
2021
$ 90,700
38,900
81,300
5,100
216,000
102,900
(15,900)
$ 303,000
Operating expenses (excluding depreciation)
Depreciation expense
Income before taxes
Income taxes expense
Net income
Cash flows from operating activities
$ 14,300
8,500
1,400
24, 200
CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
28,800
53,000
215, 100
34,900
$ 303,000
2020
$ 22,700
48,100
90,300
4,100
165,200
116,200
(8,800)
$ 272,600
$ 20,000
4,600
2,500
27,100
66,300
93,400
171,900
7,300
$ 272,600
$ 466,600
300, 300
166,300
85,200
35,900
45, 200
16,500
$ 28,700
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. (Amounts to be deducted should be indicated with a minus sign.)
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