Question

Required information The following information applies to the questions displayed below. A comparative balance sheet and income statement is shown for Cruz, Inc CRUZ, INC. Comparative Balance Sheets December 31, 2817 2016 2817 Assets $89,000 22,100 38,200 80,e80 88,800 4,900 Cash Accounts receivable, net Inventory Prepaid expenses 46,900 4,000 212,100 161,000 98,800 113,380 (15,300)(8,689) $295,600 $265, 700 Total current assets Furniture Accum. depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current 1iabilities Notes payable (long-term) Total 1iabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 13,98е 8,200 1,400 19,600 4,600 2,600 26,800 69,000 28,9800e 48 95,80e 23,500 52,400 215,00 169,100 800 28,200866 $295,600 $265,700

Answer 1

Solution Cash flows from operating activities $28,100 Net Income Adjustments to reconcile net income to operating cash flow Income statement items not affecting cash $35,000 Depreciation expense Changes in current operating assets and liabilities Accounts Receivable decrease ($46,900 S38 200 Inventory decrease ($88,000 $80,000) Prepaid Ee increase ($4,900- $4,000 $8,000 ($5,700) Wages Payable increase ($8,200-4,600) Income tax payable decrease ($2,600-1400 ($1, 200) $47,500 $75,600