Refer to the data in QS 16-11.

1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2017?
2. Assume that no additional notes payable are issued in 2017. What cash amount is paid to reduce the notes payable balance in 2017?

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CRUZ, INC. Income Statement For Year Ended December 31, 2017 $488,000 314,000 174,000 Gross profit Operating expenses 37,600 Other expenses Income before taxes 89,100 126,700 47,300 17,300 30,000 Net income CRUZ, INC. Comparatve Balance Sheets December 31,2017 2017 2016 Assets 1,000 51,000 85,800 95800 ,300 227,000 175,000 09,000 119,000 (17,000)9,000 $319,000 $285,000 Inventory 5,400 Total current assets Liabilities and Equity amnis piogae_.... $15,000 21,000 9,000 5.000 Income taxes payable Total current liabilities Notes payable (long-term) 1.400 25,400 28,600 ,0006,00 54,400 97,600 Equity 229,000 179,000 8,400 Retained earnings 35,600