Required information Use the following information for the Quick Study below. A comparative balance sheet and income statement is shown for Cruz, Inc. 2016 CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 Assets Cash $ 97,400 Accounts receivable, net 41,800 Inventory 87,400 Prepaid expenses 5,500 Total current assets 232,100 Furniture 111,000 Accum. depreciation-Furniture (17,200) Total assets $325,900 Liabilities and Equity Accounts payable $ 15,400 Wages payable 9,200 Income taxes payable 1,500 Total current liabilities 26,100 Notes payable (long-term) 30,900 $ 24,400 51,700 97,100 4,400 177,600 124,700 (9,400) $292,900 $ 21,500 4,900 2,700 29,100 71,600 57,000 100,700 Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 232,600 36,300 $325,900 185,600 6,600 $292,900 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $501,300 Cost of goods sold 322,600 Gross profit 178,700 Operating expenses Depreciation expense $38,600 Other expenses 91,600 130,200 Income before taxes 48,500 Income taxes expense 17,700 Net income $ 30,800 QS 16-13 Computing financing cash outflows LO P3 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. 0 Notes Payable Beg. bal. End. bal. 0