- Qs 16 7 Algo Indirect Computing Cash From Operations Lo P2 A Comparative Balance Sheet And Income Statement Is Shown 1 (55.77 KiB) Viewed 69 times
- Qs 16 7 Algo Indirect Computing Cash From Operations Lo P2 A Comparative Balance Sheet And Income Statement Is Shown 2 (40.19 KiB) Viewed 69 times
QS 16-7 (Algo) Indirect: Computing cash from operations LO P2 A comparative balance sheet and income
statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash $ 99,000 $ 25,000 Accounts receivable, net 42,800 53,100 Inventory 89,600 99,700 Prepaid expenses 5,600 4,400 Total current assets 237,000 182,200 Furniture 113,000 124,700 Accumulated depreciation-Furniture (17,600) (9,400) Total assets $ 332,400 $ 297,500 Liabilities and Equity Accounts payable $ 15,600 $ 21,900 Wages payable 9,400 5,200 Income taxes payable 1,500 2,700 Total current liabilities 26,500 29,800 Notes payable (long-term) 31,100 65,700 Total liabilities 57,600 95,500 Equity Common stock, $5 par value 238,600 190,000 Retained earnings 36,200 12,000 Total liabilities and equity $ 332,400 $ 297,500 es CRUZ, INCORPORATED Income
Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense $ 509,400 327,800 181,600 92,900 39,200 49,500 18.100
CRUZ, INCORPORATED Income
Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 509,400 327,800 181,600 92,900 39,200 49,500 18, 100 $ 31,400 Required: Use the indirect method to prepare the operating activities section of Cruz's
statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income
statement items not affecting cash Changes in current operating assets and liabilities