Question

Use the following information for the Quick Study below. (The following information applies to the questions displayed below.) A comparative balance sheet and income statement is shown for Cruz, Inc. 2016 CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 Assets Cash $ 75,900 Accounts receivable, net 32,600 Inventory 68,300 Prepaid expenses 4,200 Total current assets 181,000 Furniture 84,600 Accum. depreciation-Furniture (13, 100) Total assets $252,500 Liabilities and Equity Accounts payable $ 11,900 Wages payable 7,100 Income taxes payable 1,200 Total current liabilities 20, 200 Notes payable (long-term) 24,800 Total liabilities 45,000 Equity Common stock, $5 par value 177,300 Retained earnings 30,200 Total liabilities and equity $252,500 $ 18,900 40, 100 75,300 3,500 137,800 99,200 (7,500) $229,500 $ 16,900 4,000 2,200 23,100 58,400 81,500 141,500 6,500 $229,500

Answer 1

$24,300 CRUZ, INC. Statement of Cash Flows (Partial - Indirect Method) For the Year Ended December 31, 2017 Cash Flow from Operating Activities: Net Income Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash Depreciation Expense $30,200 Changes in current operating assets & liabilities Decrease in Accounts Receivables $7,500 Decrease in Inventory $7,000 Increase in Prepaid Expenses -$700 Decrease in Accounts Payable -$5,000 Increase in Wages Payable $3,100 Decrease in Income taxes payable -$1,000 Net Cash provided by operating activities [Non-cash expense and so added back] ($40,100 - $32,600; Working capital decreases and so added] [$75,300 - $68,300; Working capital decreases and so added] [$3,500 - $4,200; Working capital increases and so deducted] ($11,900 - $16,900; Working capital increases and so deducted] [$7,100 - $3,000; Working capital decreases and so added] $41,100 ($1,200 - $2,200; Working capital increases and so deducted] $65,400