Prepare the cash provided or used from operating activities

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A comparative balance sheet and income statement is shown for Cruz, Inc.

CRUZ, INC.

Comparative Balance Sheets

December 31, 2017

                                                                                       2017                                                       2016

Assets

 

 

Cash

$ 64,300

$ 16,100

Accounts receivable, net

27,600

34,100

Inventory

57,700

64,000

Prepaid expenses

3,600

2,900

Total current assets

153,200

117,100

Furniture

72,600

82,200

Accum. depreciation-Furniture

(11,200)

(6,200)

Total assets

$214,600

$193,100

Liabilities and Equity

 

 

Accounts payable

$ 10,100

$ 14,200

Wages payable

6,000

3,300

Income taxes payable

1,000

1,800

Total current liabilities

17,100

19,300

Notes payable (long-term)

20,600

47,700

Total liabilities

37,700

67,000

Equity

 

 

Common stock, $5 par value

154,700

         123,700

Retained earnings

22,200

2,400

Total liabilities and equity

$214,600

$193,100

QS 12-11 Indirect: Computing cash from operations LO P2

Required:

Use the indirect method to prepare the cash provided or used from operating activities section only of the statement of cash flows for this company. (Amounts to be deducted should be indicated with a minus sign.)

Cash flows from operating activities

Adjustments to reconcile net income to operating cash flow

Income statement items not affecting cash

Changes in current operating assets and liabilities

Reference no: EM132354708

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