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 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. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Prepaid expenses Inventory Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable 2021 2020 $ 66,100 28,500 $ 16,600 35,200 59,700 66,100 3,700 3,000 158,000 120,900 74,600 (11,600) $ 221,000 $ 10,400 6,300 85,000 (6,400) $ 199,500 $ 14,700 3,500 Income taxes payable 1,000 1,900 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 17,700 20,100 20,700 50,500 38,400 70,600 159,500 Total liabilities and equity 23,100 $ 221,000 125,000 3,900 $ 199,500 CRUZ, INCORPORATED Income Statement Sales For Year Ended December 31, 2021 $ 341,600 219,800 121,800 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 62,400 26,300 33,100 12,100 $ 21,000
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 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. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Prepaid expenses Inventory Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable 2021 2020 $ 66,100 28,500 $ 16,600 35,200 59,700 66,100 3,700 3,000 158,000 120,900 74,600 (11,600) $ 221,000 $ 10,400 6,300 85,000 (6,400) $ 199,500 $ 14,700 3,500 Income taxes payable 1,000 1,900 Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings 17,700 20,100 20,700 50,500 38,400 70,600 159,500 Total liabilities and equity 23,100 $ 221,000 125,000 3,900 $ 199,500 CRUZ, INCORPORATED Income Statement Sales For Year Ended December 31, 2021 $ 341,600 219,800 121,800 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 62,400 26,300 33,100 12,100 $ 21,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA1: International Financial Reporting Standards
Section: Chapter Questions
Problem 7MCQ
Related questions
Question
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
![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.
CRUZ, INCORPORATED
Comparative Balance Sheets
At December 31
Assets
Cash
Accounts receivable, net
Prepaid expenses
Inventory
Total current assets
Furniture
Accumulated depreciation-Furniture
Total assets
Liabilities and Equity
Accounts payable
Wages payable
2021
2020
$ 66,100
28,500
$ 16,600
35,200
59,700
66,100
3,700
3,000
158,000
120,900
74,600
(11,600)
$ 221,000
$ 10,400
6,300
85,000
(6,400)
$ 199,500
$ 14,700
3,500
Income taxes payable
1,000
1,900
Total current liabilities
Notes payable (long-term)
Total liabilities
Equity
Common stock, $5 par value
Retained earnings
17,700
20,100
20,700
50,500
38,400
70,600
159,500
Total liabilities and equity
23,100
$ 221,000
125,000
3,900
$ 199,500
CRUZ, INCORPORATED
Income Statement
Sales
For Year Ended December 31, 2021
$ 341,600
219,800
121,800
Cost of goods sold
Gross profit
Operating expenses (excluding depreciation)
Depreciation expense
Income before taxes
Income taxes expense
Net income
62,400
26,300
33,100
12,100
$ 21,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc1dbc87c-2169-4896-a66f-9c36d81636e1%2Fb6d14af1-9632-412a-b3c6-02ad248fd623%2Fh9r8ra_processed.png&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.
CRUZ, INCORPORATED
Comparative Balance Sheets
At December 31
Assets
Cash
Accounts receivable, net
Prepaid expenses
Inventory
Total current assets
Furniture
Accumulated depreciation-Furniture
Total assets
Liabilities and Equity
Accounts payable
Wages payable
2021
2020
$ 66,100
28,500
$ 16,600
35,200
59,700
66,100
3,700
3,000
158,000
120,900
74,600
(11,600)
$ 221,000
$ 10,400
6,300
85,000
(6,400)
$ 199,500
$ 14,700
3,500
Income taxes payable
1,000
1,900
Total current liabilities
Notes payable (long-term)
Total liabilities
Equity
Common stock, $5 par value
Retained earnings
17,700
20,100
20,700
50,500
38,400
70,600
159,500
Total liabilities and equity
23,100
$ 221,000
125,000
3,900
$ 199,500
CRUZ, INCORPORATED
Income Statement
Sales
For Year Ended December 31, 2021
$ 341,600
219,800
121,800
Cost of goods sold
Gross profit
Operating expenses (excluding depreciation)
Depreciation expense
Income before taxes
Income taxes expense
Net income
62,400
26,300
33,100
12,100
$ 21,000
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 2 steps
Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub