Question: A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash $
A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash $ 72,900 $ 18,100 Accounts receivable, net 31,300 38,400 Inventory 65,600 72,100 Prepaid expenses 4,000 3,300 Total current assets 173,800 131,900 Furniture 80,600 93,500 Accumulated depreciationFurniture (12,500) (7,100) Total assets $ 241,900 $ 218,300 Liabilities and Equity Accounts payable $ 11,400 $ 16,100 Wages payable 6,800 3,800 Income taxes payable 1,200 2,100 Total current liabilities 19,400 22,000 Notes payable (long-term) 24,800 55,800 Total liabilities 44,200 77,800 Equity Common stock, $5 par value 170,300 134,800 Retained earnings 27,400 5,700 Total liabilities and equity $ 241,900 $ 218,300 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales $ 373,800 Cost of goods sold 240,600 Gross profit 133,200 Operating expenses (excluding depreciation) 68,300 Depreciation expense 28,800 Income before taxes 36,100 Income taxes expense 13,100 Net income $ 23,000 Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2021? Assume that no additional notes payable are issued in 2021. What cash amount is paid to reduce the notes payable balance in 2021?
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