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

CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash $ 64,300 $ 16,100 Accounts receivable, net 27,600 34,100 Inventory 57,700 64,000 Prepaid expenses 3,600 2,900 Total current assets 153,200 117,100 Furniture 72,600 82,200 Accumulated depreciationFurniture (11,200) (6,200) Total assets $ 214,600 $ 193,100 Liabilities and Equity Accounts payable $ 10,100 $ 14,200 Wages payable 6,000 3,300 Income taxes payable 1,000 1,800 Total current liabilities 17,100 19,300 Notes payable (long-term) 20,600 47,700 Total liabilities 37,700 67,000 Equity Common stock, $5 par value 154,700 123,700 Retained earnings 22,200 2,400 Total liabilities and equity $ 214,600 $ 193,100

CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales $ 330,500 Cost of goods sold 212,700 Gross profit 117,800 Operating expenses (excluding depreciation) 60,300 Depreciation expense 25,400 Income before taxes 32,100 Income taxes expense 11,700 Net income $ 20,400 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 Earnings Beginning balance Ending balance

Notes Payable Beginning balance Ending balance