Refer to the data in QS 12-6.
QS12-6

1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2013?
2. Assume that no additional notes payable are issued in 2013. What cash amount is paid to reduce the notes payable balance in 2013?

Transcribed Image Text:

CRUZ, INC. Comparative Balance Sheets December 31, 2013 2012 2013 Assets $ 24,000 $ 94,800 Cash 51,000 Accounts receivable, net 41,000 Inventory .. Prepaid expenses 85,800 95,800 5,400 4,200 109,000 Furniture .... 119,000 (9,000) $285,000 Accum. depreciation-Furniture (17,000) Total assets $319,000 Liabilities and Equity Accounts payable .... Wages payable..... Income taxes payable $ 15,000 $ 21,000 5,000 9,000 1,400 2,600 Notes payable (long-term) Common stock, $5 par value Retained earnings .. Total liabilities and equity 29,000 69,000 229,000 179,000 35,600 8,400 $319,000 $285,000 CRUZ, INC. Income Statement For Year Ended December 31, 2013 Sales .... $488,000 Cost of goods sold .. Gross profit ... 314,000 174,000 Operating expenses Depreciation expense Other expenses $37,600 89,100 126,700 Income before taxes 47,300 Income taxes expense 17,300 Net income . $ 30,000