CRUZ, INC Comparative Balance Sheets December 31, 2017 2017 2016 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accum. depreciation-Furniture Total assets Liabilities and Equitv Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 89,000 22,100 46,900 88,000 4,000 161,000 113,300 38,200 80,000 4,900 212,100 98,800 (15,300) (8,600) $295,600 $265,700 $ 13,900 19,600 4,600 2,600 26,800 69,000 95,800 8,200 1,400 23,500 28,900 52,400 169,100 800 $295,600 $265,700 215,000 28,200 CRUZ, INC Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $454,900 292,800 162,100 Depreciation expensee Other expenses $35,000 83,000 118,000 Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $454,900 292,800 162,100 Depreciation expense $35,000 Other expenses Income before taxes Income taxes expense Net income 83,000 118,000 44,100 16,000 $ 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 2017 Net income Dividends paid End. bal. 0 Notes Payable Beg. bal. Payment on notes payable End. bal. 0