A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets 2021 2020 Cash Accounts receivable, net4437 Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable $ 85,900 $ 21,600 36,900 45,800 77,200 86,000 4,900 3,900 204,900 157,300 98,900 110,500 (15,300) (8,300) $ 288,500 $ 259,500 $ 13,600 $ 19,100 8,100. 4,300 Income taxes payable 1,300 2,400 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 23,000 25,800 26,800 63,700 49,800 89,500 31,100 16 165,100 4,900 Total liabilities and equity $ 288,500 $ 259,500 CRUZ, INCORFORATED Income Statement For Year Ended December 31, 2021 $ 444,200 285,900 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 158,300 81,200 34,200 42,900 15,600 $ 27,300 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.)
A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets 2021 2020 Cash Accounts receivable, net4437 Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable $ 85,900 $ 21,600 36,900 45,800 77,200 86,000 4,900 3,900 204,900 157,300 98,900 110,500 (15,300) (8,300) $ 288,500 $ 259,500 $ 13,600 $ 19,100 8,100. 4,300 Income taxes payable 1,300 2,400 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 23,000 25,800 26,800 63,700 49,800 89,500 31,100 16 165,100 4,900 Total liabilities and equity $ 288,500 $ 259,500 CRUZ, INCORFORATED Income Statement For Year Ended December 31, 2021 $ 444,200 285,900 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 158,300 81,200 34,200 42,900 15,600 $ 27,300 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.)
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
2021
2020
Cash
Accounts receivable, net4437
Inventory
Prepaid expenses
Total current assets
Furniture
Accumulated depreciation-Furniture
Total assets
Liabilities and Equity
Accounts payable
Wages payable
$ 85,900
$ 21,600
36,900
45,800
77,200
86,000
4,900
3,900
204,900
157,300
98,900
110,500
(15,300)
(8,300)
$ 288,500
$ 259,500
$ 13,600
$ 19,100
8,100.
4,300
Income taxes payable
1,300
2,400
Total current liabilities
Notes payable (long-term)
Total liabilities
Equity
Common stock, $5 par value
Retained earnings
23,000
25,800
26,800
63,700
49,800
89,500
31,100 16
165,100
4,900
Total liabilities and equity
$ 288,500
$ 259,500
CRUZ, INCORFORATED
Income Statement
For Year Ended December 31, 2021
$ 444,200
285,900
Sales
Cost of goods sold
Gross profit
Operating expenses (excluding depreciation)
Depreciation expense
Income before taxes
Income taxes expense
Net income
158,300
81,200
34,200
42,900
15,600
$ 27,300
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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