A comparative balance sheet and income statement is shown for Cruz, Incorporated.

CRUZ, INCORPORATED
Comparative Balance Sheets
At December 31	2021	2020
Assets
Cash	$ 69,200	$ 17,200
Accounts receivable, net	29,700	36,500
Inventory	62,200	68,500
Prepaid expenses	3,800	3,100
Total current assets	164,900	125,300
Furniture	76,600	87,800
Accumulated depreciationFurniture	(11,900)	(6,700)
Total assets	$ 229,600	$ 206,400
Liabilities and Equity
Accounts payable	$ 10,800	$ 15,200
Wages payable	6,400	3,600
Income taxes payable	1,100	2,000
Total current liabilities	18,300	20,800
Notes payable (long-term)	22,700	53,100
Total liabilities	41,000	73,900
Equity
Common stock, $5 par value	162,900	127,800
Retained earnings	25,700	4,700
Total liabilities and equity	$ 229,600	$ 206,400

CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
Sales	$ 353,400
Cost of goods sold	227,500
Gross profit	125,900
Operating expenses (excluding depreciation)	64,500
Depreciation expense	27,200
Income before taxes	34,200
Income taxes expense	12,400
Net income	$ 21,800

1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2021? 2. Assume that no additional notes payable are issued in 2021. What cash amount is paid to reduce the notes payable balance in 2021?