A comparative balance sheet and income statement is shown for Cruz, Inc.

CRUZ, INC. Comparative Balance Sheets December 31, 2015
		2015				2014
Assets
Cash	$	97,400			$	24,400
Accounts receivable, net		41,800				51,700
Inventory		87,400				97,100
Prepaid expenses		5,500				4,400
Total current assets		232,100				177,600
Furniture		111,000				124,700
Accum. depreciationFurniture		(17,200	)			(9,400	)
Total assets	$	325,900			$	292,900
Liabilities and Equity
Accounts payable	$	15,400			$	21,500
Wages payable		9,200				4,900
Income taxes payable		1,500				2,700
Total current liabilities		26,100				29,100
Notes payable (long-term)		30,900				71,600
Total liabilities		57,000				100,700
Equity
Common stock, $5 par value		232,600				185,600
Retained earnings		36,300				6,600
Total liabilities and equity	$	325,900			$	292,900

CRUZ, INC. Income Statement For Year Ended December 31, 2015
Sales				$	501,300
Cost of goods sold					322,600
Gross profit					178,700
Operating expenses
Depreciation expense	$	38,600
Other expenses		91,600			130,200
Income before taxes					48,500
Income taxes expense					17,700
Net income				$	30,800

1.	Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2015?

Retained Earnings

2.	Assume that no additional notes payable are issued in 2015. What cash amount is paid to reduce the notes payable balance in 2015?

Notes Payable