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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. 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 CRUZ, INC.

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CRUZ, INC.
Income Statement
For Year Ended December 31, 2017 Sales $330,500
Cost of goods sold 212,700
Gross profit 117,800
Operating expenses Depreciation expense $25,400 other expenses 60,300 85,700
Income before taxes 32,100
Income taxes expense 11,700
Net income $ 20,400 05 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

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05 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 flo
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

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