Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation Changes in current operating assets and liabilities. Net cash provided by operating activities 0 A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash Accounts receivable, net $ 62,800 27,000 $ 15,700 33,300 Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Wages payable Accounts payable Income taxes payable 56,600 62,500 3,500 2,900 149,900 114,400 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings $ 209,500 $ 9,900 $ 14,000 5,900 3,300 1,000 1,800 16,800 19,100 20,700 47,800 37,500 66,900 150,000 22,000 121,000 2,500 $ 209,500 $ 190,400 70,500 (10,900) 82,200 (6,200) $ 190,400 Total liabilities and equity CRUZ, INCORPORATED Income Statement Sales For Year Ended December 31, 2021 $ 326,000 209,800 116,200 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes. Income taxes expense Net income 59,500 25,100 31,600 11,500 $ 20,100 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.
Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation Changes in current operating assets and liabilities. Net cash provided by operating activities 0 A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash Accounts receivable, net $ 62,800 27,000 $ 15,700 33,300 Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Wages payable Accounts payable Income taxes payable 56,600 62,500 3,500 2,900 149,900 114,400 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings $ 209,500 $ 9,900 $ 14,000 5,900 3,300 1,000 1,800 16,800 19,100 20,700 47,800 37,500 66,900 150,000 22,000 121,000 2,500 $ 209,500 $ 190,400 70,500 (10,900) 82,200 (6,200) $ 190,400 Total liabilities and equity CRUZ, INCORPORATED Income Statement Sales For Year Ended December 31, 2021 $ 326,000 209,800 116,200 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes. Income taxes expense Net income 59,500 25,100 31,600 11,500 $ 20,100 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:Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Depreciation
Changes in current operating assets and liabilities.
Net cash provided by operating activities
0
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
Accounts receivable, net
$ 62,800
27,000
$ 15,700
33,300
Inventory
Prepaid expenses
Total current assets
Furniture
Accumulated depreciation-Furniture
Total assets
Liabilities and Equity
Wages payable
Accounts payable
Income taxes payable
56,600
62,500
3,500
2,900
149,900
114,400
Total current liabilities
Notes payable (long-term)
Total liabilities
Equity
Common stock, $5 par value
Retained earnings
$ 209,500
$ 9,900
$ 14,000
5,900
3,300
1,000
1,800
16,800
19,100
20,700
47,800
37,500
66,900
150,000
22,000
121,000
2,500
$ 209,500
$ 190,400
70,500
(10,900)
82,200
(6,200)
$ 190,400
Total liabilities and equity
CRUZ, INCORPORATED
Income Statement
Sales
For Year Ended December 31, 2021
$ 326,000
209,800
116,200
Cost of goods sold
Gross profit
Operating expenses (excluding depreciation)
Depreciation expense
Income before taxes.
Income taxes expense
Net income
59,500
25,100
31,600
11,500
$ 20,100
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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