Required information A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 2016 $ 99,300 42,600 89,100 5,600 236,600 113,000 (17,500) $332,100 $ 24,900 52,800 99,200 4,500 181,400 127,500 (9,600) $299, 300 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accum. depreciation-Furniture Total assets Liabilities and Equity 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 $ 15,700 9,400 1,500 26,600 30,900 57,500 $ 22,000 5,000 2,800 29,800 74,300 104,100 241,200 33,400 $332,100 192,600 2,600 $299, 300 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales 5512,300 Cost of goods sold 329,700 Gross profit 162,600 Operating expenses Depreciation expense $39,400 Other expenses 93,500 132.900 Income before taxes 49,700 Income taxes expense 18,100 Net Income 5.31,600 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 Beg ball Retained Earnings 127,500 77.500 Dividends paid 63,000 113,000 2017 Net Income End, bal Beg bal Notes Payable 9,600 39,400 31 5001 End. bal 17.500 Notes payable issued Payment on notes payable