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. (Amounts to
be deducted should be indicated with a minus sign.)
- Use The Above Balance Sheet And Income Statement To Prepare The Operating Activities Section By Direct Method Assume Al 1 (143.01 KiB) Viewed 39 times
! Required information 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 2021 2020 Assets Cash $ 62,700 $ 15,700 Accounts receivable, net 27,000 33,300 Inventory 56,600 62,500 Prepaid expenses 3,500 2,900 Total current assets. Furniture 149,800 114,400 70,500 82,200 Accumulated depreciation-Furniture (10,900) (6,200) Total assets $ 209,400 Liabilities and Equity Accounts payable $ 9,900 Wages payable 5,900 Income taxes payable. 1,000 Total current liabilities 16,800 20,700 Notes payable (long-term) Total liabilities 37,500 Equity Common stock, $5 par value. 152,200 Retained earnings 19,700 Total liabilities and equity $ 209,400 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales $326,000 209,800 Cost of goods sold Gross profit 116, 200 Operating expenses (excluding depreciation) 59,500 Depreciation expense 25,100 Income before taxes 31,600 11,500 Income taxes expense Net income $ 20,100 QS 16-28B (Algo) Direct: Computing cash from operations LO P5 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. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities $ 190,400 $ 14,000 3,300 1,800 19,100 47,800 66,900 123,000 500 $ 190,400