A comparative balance sheet and income statement is shown for Cruz, Inc. 2016 CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 Assets Cash $ 89,000 Accounts receivable, net 38,200 Inventory Prepaid expenses 4,900 Total current assets 212,100 Furniture 98,800 Accum. depreciation-Furniture (15,300) Total assets $295,600 Liabilities and Equity Accounts payable $ 13,900 Wages payable 8,200 Income taxes payable 1,400 Total current liabilities 23,500 Notes payable (long-term) 28,900 Total liabilities 52,400 Equity Common stock, $5 par value 215,000 Retained earnings 28, 200 Total liabilities and equity $295,600 $ 22,100 46,900 88,000 4,000 161,000 113,300 (8,600) $265, 700 $ 19,600 4,600 2,600 26,800 69,000 95,800 169, 100 800 $265, 700 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $454,900 Cost of goods sold 292,800 Gross profit 162,100 Operating expenses Depreciation expense $ 35,000 Other expenses 83,000 118,000 Income before taxes 44,100 Income taxes expense 16,000 Net income $ 28,100 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? Retained Earnings Beg bal. End bal. Notes Payable Beg bal. End, bal