Required Information [The following information applies to the questions displayed below.] 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 $ 62,700 27,000 56,600 3,500 149,800 70,500 (10,900) $ 209,400 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 1. Cash paid for inventory 2. Cash paid for operating expenses $ 9,900 5,900 1,000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 16,800 20,700 37,500 152,200 19,700 $ 209,400 2020 $ 15,700 33,300 62,500 2,900 114,400 82,200 (6,200) $ 190,400 $ 14,000 3,300 1,800 19,100 47,800 66,900 123,000 500 $ 190,400 $ 326,000 209,800 116, 200 59,500 25,100 31,600 11,500 $ 20,100 1. How much cash is paid to acquire inventory during year 2021? 2. How much cash is paid for operating expenses (excluding depreciation) during year 2021? Hint: Examine prepaid expenses and wages payable.
Required Information [The following information applies to the questions displayed below.] 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 $ 62,700 27,000 56,600 3,500 149,800 70,500 (10,900) $ 209,400 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 1. Cash paid for inventory 2. Cash paid for operating expenses $ 9,900 5,900 1,000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 16,800 20,700 37,500 152,200 19,700 $ 209,400 2020 $ 15,700 33,300 62,500 2,900 114,400 82,200 (6,200) $ 190,400 $ 14,000 3,300 1,800 19,100 47,800 66,900 123,000 500 $ 190,400 $ 326,000 209,800 116, 200 59,500 25,100 31,600 11,500 $ 20,100 1. How much cash is paid to acquire inventory during year 2021? 2. How much cash is paid for operating expenses (excluding depreciation) during year 2021? Hint: Examine prepaid expenses and wages payable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required Information
[The following information applies to the questions displayed below.]
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
2821
$ 62,700
27,000
56,600
3,500
Operating expenses (excluding depreciation)
Depreciation expense
Income before taxes
Income taxes expense
Net income
1. Cash paid for inventory
2. Cash paid for operating expenses
149,800
70,500
(10,900)
$ 209,400
$ 9,900
5,900
1,000
CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
16,800
20,700
37,500
152,200
19,700
$ 209,400
2020
$ 15,700
33,300
62,500
2,900
114,400
82,200
(6,200)
$ 190,400
$ 14,000
3,300
1,800
19,100
47,800
66,900
123,000
500
$ 190,400
$ 326,000
209,800
116, 200
59,500
25,100
31,600
11,500
$ 20,100
1. How much cash is paid to acquire inventory during year 2021?
2. How much cash is paid for operating expenses (excluding depreciation) during year 2021? Hint: Examine prepaid expenses and
wages payable.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F41f671bb-1a8b-482b-b050-139a1d418ebe%2Fdff8982b-d99a-46db-bfbf-1821400bfe4b%2Fgf45c9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
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
2821
$ 62,700
27,000
56,600
3,500
Operating expenses (excluding depreciation)
Depreciation expense
Income before taxes
Income taxes expense
Net income
1. Cash paid for inventory
2. Cash paid for operating expenses
149,800
70,500
(10,900)
$ 209,400
$ 9,900
5,900
1,000
CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
16,800
20,700
37,500
152,200
19,700
$ 209,400
2020
$ 15,700
33,300
62,500
2,900
114,400
82,200
(6,200)
$ 190,400
$ 14,000
3,300
1,800
19,100
47,800
66,900
123,000
500
$ 190,400
$ 326,000
209,800
116, 200
59,500
25,100
31,600
11,500
$ 20,100
1. How much cash is paid to acquire inventory during year 2021?
2. How much cash is paid for operating expenses (excluding depreciation) during year 2021? Hint: Examine prepaid expenses and
wages payable.
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