Question

QS 16-26B Direct: Computing operating cash outflows LO P5

CRUZ, INC. Comparative Balance Sheets December 31, 2019
		2019				2018
Assets
Cash	$	62,700			$	15,700
Accounts receivable, net		27,000				33,300
Inventory		56,600				62,500
Prepaid expenses		3,500				2,900
Total current assets		149,800				114,400
Furniture		70,500				82,200
Accum. depreciation—Furniture		(10,900	)			(6,200	)
Total assets	$	209,400			$	190,400
Liabilities and Equity
Accounts payable	$	9,900			$	14,000
Wages payable		5,900				3,300
Income taxes payable		1,000				1,800
Total current liabilities		16,800				19,100
Notes payable (long-term)		20,700				47,800
Total liabilities		37,500				66,900
Equity
Common stock, $5 par value		152,200				123,000
Retained earnings		19,700				500
Total liabilities and equity	$	209,400			$	190,400

   

CRUZ, INC. Income Statement For Year Ended December 31, 2019
Sales				$	326,000
Cost of goods sold					209,800
Gross profit					116,200
Operating expenses
Depreciation expense	$	25,100
Other expenses		59,500			84,600
Income before taxes					31,600
Income taxes expense					11,500
Net income				$	20,100

1. How much cash is paid to acquire inventory during year 2019?
2. How much cash is paid for "other expenses" during year 2019? Hint: Examine prepaid expenses and wages payable.

Answer 1