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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
CRUZ, INCORPORATED | ||
Comparative |
||
At December 31 | 2021 | 2020 |
---|---|---|
Assets | ||
Cash | $ 99,300 | $ 24,900 |
42,600 | 52,800 | |
Inventory | 89,100 | 99,200 |
Prepaid expenses | 5,600 | 4,500 |
Total current assets | 236,600 | 181,400 |
Furniture | 113,000 | 127,500 |
(17,500) | (9,600) | |
Total assets | $ 332,100 | $ 299,300 |
Liabilities and Equity | ||
Accounts payable | $ 15,700 | $ 22,000 |
Wages payable | 9,400 | 5,000 |
Income taxes payable | 1,500 | 2,800 |
Total current liabilities | 26,600 | 29,800 |
Notes payable (long-term) | 30,900 | 74,300 |
Total liabilities | 57,500 | 104,100 |
Equity | ||
Common stock, $5 par value | 241,200 | 192,600 |
33,400 | 2,600 | |
Total liabilities and equity | $ 332,100 | $ 299,300 |
CRUZ, INCORPORATED | |
Income Statement | |
For Year Ended December 31, 2021 | |
Sales | $ 512,300 |
---|---|
Cost of goods sold | 329,700 |
Gross profit | 182,600 |
Operating expenses (excluding depreciation) | 93,500 |
Depreciation expense | 39,400 |
Income before taxes | 49,700 |
Income taxes expense | 18,100 |
Net income | $ 31,600 |
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?
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