CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 2016 AssetS Cash Ac

Question

CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 2016 AssetS Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accum. depreciation-Furniture Total assets $ 75,900 18,900 40,100 75,300 3,500 137,800 99,200 7,500 $252,500 $229,500 32,600 68,300 4,200 181,000 84,600 13,100 Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total 1iabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 11,900 16,900 4,000 2,200 23,100 24,80058-100 81,500 7,100 1,200 20,200 45,000 141,500 6,500 $252,500 $229,500 177,300 30,200 CRUZ, INC Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $392,900 252,900 140,000 Depreciation expense $30,200 Other expenses Income before taxes Income taxes expense Net income 71,600 101, 800 38,200 13,900 $ 24,300

Explanation / Answer

Calculation of cash flow from oprating activities throught indirect method

Note :

Particulars Amount ($) Amount ($) Cash flow from Operating Activities Net Income 24,300 Add: Adjustment to reconcile operating income        non cash activities Items        Depriciation 30,200 30,200 Add/ Less : Changes in net working capital                     Assets                    Account Receivable decrease 7,500                    Inventory decrease 7,000                    Prepaid Expenses increase (700)                   Liabilities                    Accounts Payable decreases (5,000)                    Wages Payable increases 3,100                    Income Tax Payable decreases (1,000)                    Notes Payable decreases (33,600) (22,700) Gross Cash flow from Operating Activities 31,800 Less : Income tax expenses (13,900) NET CASH FLOW FROM OPERATING ACTIVITIES 17,900

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