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. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities Receipts from sales to customers Payments for inventory Payments for taxes Payments for other expenses Net cash provided by operating activities $
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. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities Receipts from sales to customers Payments for inventory Payments for taxes Payments for other expenses Net cash provided by operating activities $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format ? And Fast answering please and explain proper steps by Step.
![Use the following information for the Quick Study below. (Algo)
[The following information applies to the questions displayed below.]
A comparative balance sheet and income statement is shown for Cruz, Incorporated.
At December 31
Assets
Cash
CRUZ, INCORPORATED
Comparative Balance Sheets
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
Show Transcribed Text
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
$ 66,100
28,500
59,700
3,700
158,000
74,600
(11,600)
$ 221,000
$10.400
6,300
1,000
S
17,700
20,700
38.400
33
Operating expenses (excluding depreciation)
Depreciation expense
Income before taxes
Income taxes expense
Net income
Ć
20,700
38,400
CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
159,500
23,100
$ 221,000
2020
$ 16,600
35,200
66,100
3,000
120,900
85,000
(6,400)
$ 199,500
$ 14,700
3,500
1,900
20,100
50,500
70.600
50,500
70,600
125,000
3,900
$ 199,500
$341,600
219,800
121,800
62,400
26,300
33,100
12,100
$ 21,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0cfa4f04-40a2-41f3-8662-9f69080778f5%2F3a1e0912-9c24-4caa-a563-f2b03998d24d%2Fbae7si_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Use the following information for the Quick Study below. (Algo)
[The following information applies to the questions displayed below.]
A comparative balance sheet and income statement is shown for Cruz, Incorporated.
At December 31
Assets
Cash
CRUZ, INCORPORATED
Comparative Balance Sheets
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
Show Transcribed Text
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
$ 66,100
28,500
59,700
3,700
158,000
74,600
(11,600)
$ 221,000
$10.400
6,300
1,000
S
17,700
20,700
38.400
33
Operating expenses (excluding depreciation)
Depreciation expense
Income before taxes
Income taxes expense
Net income
Ć
20,700
38,400
CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
159,500
23,100
$ 221,000
2020
$ 16,600
35,200
66,100
3,000
120,900
85,000
(6,400)
$ 199,500
$ 14,700
3,500
1,900
20,100
50,500
70.600
50,500
70,600
125,000
3,900
$ 199,500
$341,600
219,800
121,800
62,400
26,300
33,100
12,100
$ 21,000
Transcribed Image Text: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.
Note: Amounts to be deducted should be indicated with a minus sign.
Cash flows from operating activities
Receipts from sales to customers
Payments for inventory
Payments for taxes
Payments for other expenses
Net cash provided by operating activities
$
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education