A comparative balance sheet and income statement is shown for Cruz, Incorporated. ...
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Accounting
A comparative balance sheet and income statement is shown for Cruz, Incorporated.
CRUZ, INCORPORATED
Comparative Balance Sheets
At December 31
2021
2020
Assets
Cash
$ 99,000
$ 25,000
Accounts receivable, net
42,800
53,100
Inventory
89,600
99,700
Prepaid expenses
5,600
4,400
Total current assets
237,000
182,200
Furniture
113,000
124,700
Accumulated depreciationFurniture
(17,600)
(9,400)
Total assets
$ 332,400
$ 297,500
Liabilities and Equity
Accounts payable
$ 15,600
$ 21,900
Wages payable
9,400
5,200
Income taxes payable
1,500
2,700
Total current liabilities
26,500
29,800
Notes payable (long-term)
31,100
65,700
Total liabilities
57,600
95,500
Equity
Common stock, $5 par value
238,600
190,000
Retained earnings
36,200
12,000
Total liabilities and equity
$ 332,400
$ 297,500
CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
Sales
$ 509,400
Cost of goods sold
327,800
Gross profit
181,600
Operating expenses (excluding depreciation)
92,900
Depreciation expense
39,200
Income before taxes
49,500
Income taxes expense
18,100
Net income
$ 31,400
1. How much cash is received from sales to customers for year 2021? Assume all the sales were made on credit basis. 2. What is the net increase or decrease in the Cash account for year 2021?
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