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 Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities depreciation-Furniture Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit 2021 $ 85,600 36,800 77,100 4,700 204, 200 94,700 (14,700) $ 284,200 Operating expenses (excluding depreciation) Depreciation expense Income before taxes. Income taxes expense Net income $ 13,400 8,000 CRUZ, INCORPORATED Income statement For Year Ended December 31, 2021 1,400 22,800 28,900 51,700 204,000 28,500 $ 284, 200 2020 $ 21,300 45,200 84,900 3,900 155,300 110,500 (8,400) $ 257,400 $ 19,000 4,500 2,500 26,000 66,400 92,400 162,300 2,700 $ 257,400 $ 440,700 283,700 157,000 80,400 33,900 42,700 15,500 $ 27, 200 Required: Use the Indirect method to prepare the operating activities section of Cruz's statement of cash flows. Note: 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 Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities depreciation-Furniture Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit 2021 $ 85,600 36,800 77,100 4,700 204, 200 94,700 (14,700) $ 284,200 Operating expenses (excluding depreciation) Depreciation expense Income before taxes. Income taxes expense Net income $ 13,400 8,000 CRUZ, INCORPORATED Income statement For Year Ended December 31, 2021 1,400 22,800 28,900 51,700 204,000 28,500 $ 284, 200 2020 $ 21,300 45,200 84,900 3,900 155,300 110,500 (8,400) $ 257,400 $ 19,000 4,500 2,500 26,000 66,400 92,400 162,300 2,700 $ 257,400 $ 440,700 283,700 157,000 80,400 33,900 42,700 15,500 $ 27, 200 Required: Use the Indirect method to prepare the operating activities section of Cruz's statement of cash flows. Note: 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:QS 12-7 (Algo) Indirect: Computing cash from operations LO P2
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
Operating expenses (excluding depreciation)
Depreciation expense
Income before taxes
Income taxes expense
Net income
2021
$ 85,600
36,800
77,100
4,700
204, 200
94,700
(14,700)
$ 284,200
CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
$ 13,400
8,000
1,400
22,800
28,900
51,700
204,000
28,500
$ 284,200
2020
$ 21,300
45,200
84,900
3,900
155,300
110,500
(8,400)
$ 257,400
$ 19,000
4,500
2,500
26,000
66,400
92,400
162,300
2,700
$ 257,400
$ 440,700
283,700
157,000
80,400
33,900
42,700
15,500
$ 27, 200
Required:
Use the Indirect method to prepare the operating activities section of Cruz's statement of cash flows.
Note: Amounts to be deducted should be indicated with a minus sign.
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