A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC Comparative Balance Sheets December 31, 2016 2015 2016 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accum. depreciation Furniture Total assets 24,000 51,000 95,800 4,200 175,000 119,000 94,800 41,000 85,800 5,400 227,000 109,000 (17.000) (9,000) 319,000 S 285,000 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 15,000 9,000 1,400 25,400 29,000 54,400 21,000 5,000 2,600 28,600 69,000 97,600 229,000 35,600 179,000 8,400 319,000 285,000 CRUZ, INC Income Statement For Year Ended December 31, 2016 Sales Cost of goods sold Gross profit Operating expenses $ 488,000 314,000 174,000 Depreciation expense $37,600 Other expenses Income before taxes Income taxes expense Net income 89,100 126,700 47,300 17,300 $ 30,000 1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2016? Retained Earnings Beg. bal. End. bal. 2. Assume that no additional notes payable are issued in 2016. What cash amount is paid to reduce the notes payable balance in 20167 Notes Payable Beg. bal End. bal