Required information

Use the following information for the Quick Study below.

[The following information applies to the questions displayed below.]

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

CRUZ, INC. Comparative Balance Sheets December 31, 2017
		2017				2016
Assets
Cash	$	99,000			$	25,000
Accounts receivable, net		42,800				53,100
Inventory		89,600				99,700
Prepaid expenses		5,600				4,400
Total current assets		237,000				182,200
Furniture		113,000				124,700
Accum. depreciationFurniture		(17,600	)			(9,400	)
Total assets	$	332,400			$	297,500
Liabilities and Equity
Accounts payable	$	15,600			$	21,900
Wages payable		9,400				5,200
Income taxes payable		1,500				2,700
Total current liabilities		26,500				29,800
Notes payable (long-term)		31,100				65,700
Total liabilities		57,600				95,500
Equity
Common stock, $5 par value		238,600				190,000
Retained earnings		36,200				12,000
Total liabilities and equity	$	332,400			$	297,500

CRUZ, INC. Income Statement For Year Ended December 31, 2017
Sales				$	509,400
Cost of goods sold					327,800
Gross profit					181,600
Operating expenses
Depreciation expense	$	39,200
Other expenses		92,900			132,100
Income before taxes					49,500
Income taxes expense					18,100
Net income				$	31,400

QS 12-13 Computing financing cash outflows LO P3

1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2017? 2. Assume that no additional notes payable are issued in 2017. What cash amount is paid to reduce the notes payable balance in 2017?

Retained Earnings
Beg. bal.
End. bal.	0
Notes Payable
Beg. bal.
End. bal.	0

QS 12-16B Direct: Computing cash from operations LO P5

Use the above balance sheet and income statement to prepare the cash provided (used) from operating activities section by direct method. (Amounts to be deducted should be indicated with minus sign

Cash flows from operating activities
Payments for inventory
Payments for other expenses
Payments for taxes
Net cash provided by operating activities	$0