Required information

Use the following information for the Quick Study 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	$	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
Accum. 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, INC. Income Statement For Year Ended December 31, 2017
Sales				$	392,900
Cost of goods sold					252,900
Gross profit					140,000
Operating expenses
Depreciation expense	$	30,200
Other expenses		71,600			101,800
Income before taxes					38,200
Income taxes expense					13,900
Net income				$	24,300

QS 16-13 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?