Use the following information for the Quick Study below. A comparative balance sheet and income statement is shown for

Question

Use the following information for the Quick Study below. A comparative balance sheet and income statement is shown for Cruz, Inc. 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 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

Help In Homework · Accepted Answer

Part 1)Cash received from customers = beginning account receivable + sales - ending account receivable = 51000+488000-41000 = $ 498000 So the cash received from customers $ 498000 Part 2) Net increase or (decrease) in cash = Ending balance - beginning balance = 94800-24000 = $ 70800 increase So net increase in cash is $ 70800

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Use the following information for the Quick Study below

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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

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