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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?

Retained Earnings
Beg.bal.,
End.bal.,

2.

Assume that no additional notes payable are issued in 2013. What cash amount is paid to reduce the notes payable balance in 2013?

Notes Payable
Beg.bal.,
End.bal.,

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