Refer to the data in QS 12-11.

1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2018?

2. Assume that no additional notes payable are issued in 2018. What cash amount is paid to reduce the notes payable balance in 2018?

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CRUZ, INC. Comparative Balance Sheets December 31, 2018 2018 2017 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 (17,000) $319,000 (9,000) $285,000 Accum. depreciation-Furniture Total assets... Liabilities and Equity Accounts payable.. $ 15,000 $ 21,000 Wages payable.. 9,000 5,000 Income taxes payable.. Total current liabilities . Notes payable (long-term).. 1.400 2,600 25,400 28,600 29,000 69,000 Total liabilities.. 54,400 97,600 Equity Common stock, $5 par value. Retained eamings... Total liabilities and equity.. 229,000 179,000 35,600 $319,000 8,400 $285,000 .....