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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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CRUZ, INCORPORATED
Comparative Balance Sheets
At December 31 2021 2020
Assets    
Cash $ 99,300 $ 24,900
Accounts receivable, net 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
Accumulated depreciation—Furniture (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
Retained earnings 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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