A comparative balance sheet and income statement is shown for Cruz, Inc. Statement to prepare
the cash provided (used) from operating activities section by direct method. (Amount to be
deducted should be indicated with a minus sign).
Solution
Cash Flows From Operating Activities:
Amount($) Amount($)
Net Income 30,000
+ Depreciation 37,600
+ Decrease in Account Receivables 10,000
+ Decrease in Inventory 10,000
- Increase in Prepaid Expenses 1,200
- Decrease in Accounts Payable 6,000
+ Increase in Wages Payable 4,000
- Decrease in Tax Payable 1,200
Cash From Operations 83,200