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A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2013 2013 2012 Assets Cash $
A comparative balance sheet and income statement is shown for Cruz, Inc. |
CRUZ, INC. Comparative Balance Sheets December 31, 2013 | |||||||
2013 | 2012 | ||||||
Assets | |||||||
Cash | $ | 94,800 | $ | 24,000 | |||
Accounts receivable, net | 41,000 | 51,000 | |||||
Inventory | 85,800 | 95,800 | |||||
Prepaid expenses | 5,400 | 4,200 | |||||
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 | |||||
Notes payable (long-term) | 29,000 | 69,000 | |||||
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, 2013 | ||||||
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 | ||||
1. | Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2013?
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2. | Assume that no additional notes payable are issued in 2013. What cash amount is paid to reduce the notes payable balance in 2013? | |||||||||||||||||||||||||||
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