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

CRUZ, INCORPORATED
Comparative Balance Sheets
At December 31	2021	2020
Assets
Cash	$ 75,900	$ 18,900
Accounts receivable, net	32,600	40,100
Inventory	68,300	75,300
Prepaid expenses	4,200	3,500
Total current assets	181,000	137,800
Furniture	84,600	99,200
Accumulated depreciationFurniture	(13,100)	(7,500)
Total assets	$ 252,500	$ 229,500
Liabilities and Equity
Accounts payable	$ 11,900	$ 16,900
Wages payable	7,100	4,000
Income taxes payable	1,200	2,200
Total current liabilities	20,200	23,100
Notes payable (long-term)	24,800	58,400
Total liabilities	45,000	81,500
Equity
Common stock, $5 par value	177,300	141,500
Retained earnings	30,200	6,500
Total liabilities and equity	$ 252,500	$ 229,500

CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
Sales	$ 392,900
Cost of goods sold	252,900
Gross profit	140,000
Operating expenses (excluding depreciation)	71,600
Depreciation expense	30,200
Income before taxes	38,200
Income taxes expense	13,900
Net income	$ 24,300

1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2021? 2. Assume that no additional notes payable are issued in 2021. What cash amount is paid to reduce the notes payable balance in 2021?

Retained earning and Notes payable Needed