[The following information applies to the questions displayed below.] A comparative balance sheet and income...
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[The following information applies to the questions displayed below.]
A comparative balance sheet and income statement is shown for Cruz, Incorporated.
CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash $ 66,100 $ 16,600 Accounts receivable, net 28,500 35,200 Inventory 59,700 66,100 Prepaid expenses 3,700 3,000 Total current assets 158,000 120,900 Furniture 74,600 85,000 Accumulated depreciationFurniture (11,600) (6,400) Total assets $ 221,000 $ 199,500 Liabilities and Equity Accounts payable $ 10,400 $ 14,700 Wages payable 6,300 3,500 Income taxes payable 1,000 1,900 Total current liabilities 17,700 20,100 Notes payable (long-term) 20,700 50,500 Total liabilities 38,400 70,600 Equity Common stock, $5 par value 159,500 125,000 Retained earnings 23,100 3,900 Total liabilities and equity $ 221,000 $ 199,500
CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales $ 341,600 Cost of goods sold 219,800 Gross profit 121,800 Operating expenses (excluding depreciation) 62,400 Depreciation expense 26,300 Income before taxes 33,100 Income taxes expense 12,100 Net income $ 21,000
- How much cash is received from sales to customers for year 2021? Assume all the sales were made on credit basis.
- What is the net increase or decrease in the Cash account for year 2021
[The following information applies to the questions displayed below.]
A comparative balance sheet and income statement is shown for Cruz, Incorporated.
CRUZ, INCORPORATED | ||
Comparative Balance Sheets | ||
At December 31 | 2021 | 2020 |
---|---|---|
Assets | ||
Cash | $ 66,100 | $ 16,600 |
Accounts receivable, net | 28,500 | 35,200 |
Inventory | 59,700 | 66,100 |
Prepaid expenses | 3,700 | 3,000 |
Total current assets | 158,000 | 120,900 |
Furniture | 74,600 | 85,000 |
Accumulated depreciationFurniture | (11,600) | (6,400) |
Total assets | $ 221,000 | $ 199,500 |
Liabilities and Equity | ||
Accounts payable | $ 10,400 | $ 14,700 |
Wages payable | 6,300 | 3,500 |
Income taxes payable | 1,000 | 1,900 |
Total current liabilities | 17,700 | 20,100 |
Notes payable (long-term) | 20,700 | 50,500 |
Total liabilities | 38,400 | 70,600 |
Equity | ||
Common stock, $5 par value | 159,500 | 125,000 |
Retained earnings | 23,100 | 3,900 |
Total liabilities and equity | $ 221,000 | $ 199,500 |
CRUZ, INCORPORATED | |
Income Statement | |
For Year Ended December 31, 2021 | |
Sales | $ 341,600 |
---|---|
Cost of goods sold | 219,800 |
Gross profit | 121,800 |
Operating expenses (excluding depreciation) | 62,400 |
Depreciation expense | 26,300 |
Income before taxes | 33,100 |
Income taxes expense | 12,100 |
Net income | $ 21,000 |
- How much cash is received from sales to customers for year 2021? Assume all the sales were made on credit basis.
- What is the net increase or decrease in the Cash account for year 2021
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