1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2011?
2. Assume that no additional notes payable are issued in 2011. What cash amount is paid to reduce the notes payable balance in2011?

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ORWELL, INC. Balance Sheets December 31,2011 2011 2010 2 Cashtt.. Accounts recelvable, net Inventory Prepaid expenses Furniture Accum. depreciation Furniture000) Total assets. $95,800 25,000 52.000 96,800 5.200 110,000 20,000 (10,000) $323,000 $289,000 42,000 86,800 6,400 ORWELL, INC. Income Statement For Year Ended December 31, 2011 $468,000 Sales-.... Cost of goods sold Gross profit Operating expenses 312,000Liabilities and Equity 156,000Accounts payable 16,000 22,000 6,000 3,600 70,000 230,000 80,000 7.400 $ 35,800 Total habilties and equity$323,000 $289.000 Depreciation expense Other expenses57.000 95,600 Notes payable (long-term) Wages payable.. Income taxes payable .. 10,000 2.400 30,000 $38,600 Income before taxes Income taxes expense Net Income 60.400 Common stock, $5 par value2 24,600 Retained earnings. 34,600