CRUZ, INC.
Income Statement
For Year Ended December 31, 2017
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \(488,000
Cost of goods sold . . . . . . . . . . . . . . . . . . 314,000
Gross profit . . . . . . . . . . . . . . . . . . . . . . . 174,000
Operating expenses
Depreciation expense . . . . . . . . . . . . . \)37,600
Other expenses . . . . . . . . . . . . . . . . . . 89,100 126,700
Income before taxes . . . . . . . . . . . . . . . . 47,300
Income taxes expense . . . . . . . . . . . . . . . 17,300
Net income . . . . . . . . . . . . . . . . . . . . . . . . \( 30,000
CRUZ, INC.
Comparative Balance Sheets
December 31, 2017
2017 2016
Assets
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \) 94,800 \( 24,000
Accounts receivable, net . . . . . . . . . . . . . . . . . . . 41,000 51,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,800 95,800
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . 5,400 4,200
Total current assets . . . . . . . . . . . . . . . . . . . . . . . 227,000 175,000
Furniture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109,000 119,000
Accum. depreciation—Furniture . . . . . . . . . . . . . (17,000) (9,000)
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \)319,000 \(285,000
Liabilities and Equity
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . \) 15,000 \( 21,000
Wages payable . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000 5,000
Income taxes payable . . . . . . . . . . . . . . . . . . . . . 1,400 2,600
Total current liabilities . . . . . . . . . . . . . . . . . . . . . 25,400 28,600
Notes payable (long-term) . . . . . . . . . . . . . . . . . 29,000 69,000
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,400 97,600
Equity Common stock, \)5 par value . . . . . . . . . . . . . . . 229,000 179,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . 35,600 8,400
Total liabilities and equity . . . . . . . . . . . . . . . . . . \(319,000 \)285,000
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.
