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A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 2021 $ 91,100 39,100 81,800 5,200 217, 200 105,000 (16,200) $ 306,000 $ 14,400 8,600 1,400 24,400 28,900 53,300 216,400 36,300 $ 306,000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 2020 $ 22,900 48,600 91,300 4,100 166,900 116, 200 (8,700) $ 274,400 $ 20,200 4,500 2,500 27,200 66,400 93,600 172,100 8,700 $ 274,400 $ 469,700 302,300 167,400 85,900 36,200 45,300 16,500 $ 28,800 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 2021?

A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 2021 $ 91,100 39,100 81,800 5,200 217, 200 105,000 (16,200) $ 306,000 $ 14,400 8,600 1,400 24,400 28,900 53,300 216,400 36,300 $ 306,000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 2020 $ 22,900 48,600 91,300 4,100 166,900 116, 200 (8,700) $ 274,400 $ 20,200 4,500 2,500 27,200 66,400 93,600 172,100 8,700 $ 274,400 $ 469,700 302,300 167,400 85,900 36,200 45,300 16,500 $ 28,800 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 2021?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets 2021 At December 31 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 91,100 39,100 81,800 5,200 217, 200 105,000 (16,200) $ 306,000 $ 14,400 8,600 1,400 24,400 28,900 53,300 216,400 36,300 $ 306,000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 2020 $ 22,900 48,600 91,300 4,100 166,900 116, 200 (8,700) $ 274,400 $ 20,200 4,500 2,500 27, 200 66,400 93,600 172,100 8,700 $ 274,400 $ 469,700 302,300 167,400 85,900 36,200 45,300 16,500 $ 28,800 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?
Transcribed Image Text:A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets 2021 At December 31 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 91,100 39,100 81,800 5,200 217, 200 105,000 (16,200) $ 306,000 $ 14,400 8,600 1,400 24,400 28,900 53,300 216,400 36,300 $ 306,000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 2020 $ 22,900 48,600 91,300 4,100 166,900 116, 200 (8,700) $ 274,400 $ 20,200 4,500 2,500 27, 200 66,400 93,600 172,100 8,700 $ 274,400 $ 469,700 302,300 167,400 85,900 36,200 45,300 16,500 $ 28,800 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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