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 $ 94,800 Accounts receivable, net 41,000 Inventory 85,800 Prepaid expenses 5,400 Total current assets 227,000 Furniture 109,000 Accum. depreciation-Furniture (17,000) Total assets $319,000 Liabilities and Equity Accounts payable $ 15,000 Wages payable 9,000 Income taxes payable 1,400 Total current liabilities 25,400 Notes payable (long-term) 29,000 Total liabilities 54,400 Equity Common stock, $5 par value 229,000 Retained earnings 35,600 Total liabilities and equity $319,000 $ 24, eee 51,000 95,800 4,200 175, eee 119,000 (9,000) $285,000 $ 21, eee 5.000 2,600 28,600 69, eee 97,600 179, eee 8,400 $285, eee CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $488, eee Cost of goods sold 314,000 Gross profit 174, eee Operating expenses Depreciation expense $37,600 Other expenses 89,100 126,700 Income before taxes 47,300 Income taxes expense 17,300 Net income $ 30,000 Common stock, $5 par value Retained earnings Total liabilities and equity 229,000 35,600 $319,000 179.000 8,400 $285, 280 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $488,000 Cost of goods sold 314,000 Gross profit 174,000 Operating expenses Depreciation expense $37,600 other expenses 89, 109 126,7ee Income before taxes 47, 300 Income taxes expense 17,300 Net income $ 30,000 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? Bog bal 2017 Net income Dividends paid End bal Retained Earnings 8,400 30,000 (37.600) 800 Notes Payable Beg. bal End, bal