Comparative balance sheets and income statements follow.

Comparative Balance Sheets

At December $31$ Year $2$ Year $1$

Assets

Cash $ $85,600$ $ $21,300$

Accounts receivable, net $36,80045,200$

Inventory $77,10084,900$

Prepaid expenses $4,7003,900$

Total current assets $204,200155,300$

Equipment $94,700110,500$

Accumulated depreciation$$Equipment $(14,700)(8,400)$

Total assets $ $284,200$ $ $257,400$

Liabilities and Equity

Accounts payable $ $13,400$ $ $19,000$

Salaries payable $8,0004,500$

Income taxes payable $1,4002,500$

Total current liabilities $22,80026,000$

Notes payable $($long$-$term$)28,90066,400$

Total liabilities $51,70092,400$

Equity

Common stock, no par value $204,000162,300$

Retained earnings $28,5002,700$

Total liabilities and equity $ $284,200$ $ $257,400$

Income Statement

For Year Ended December $31$ Year $2$

Sales $ $440,700$

Cost of goods sold $283,700$

Gross profit $157,000$

Operating expenses

$($excluding depreciation$)80,400$

Depreciation expense $33,900$

Income before taxes $42,700$

Income taxes expense $15,500$

Net income $ $27,200$

ANSWER THESE QUESTIONS:

$1.$ Assume that no additional notes payable are issued in Year $2.$ What cash amount is paid to reduce notes payable in Year $2?$

$2.$ Assume that all common stock is issued for cash. What cash amount is paid for dividends in Year $2?$