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 $ 99,000 42,800 89,600 5,600 Sales Cost of goods sold Gross profit 237,000 113,000 (17,600) $ 332,400 $ 15,600 9,400 1,500 26,500 31,100 57,600 238,600 36,200 $ 332,400 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 2020 $ 25,000 53,100 99,700 4,400 182,200 124,700 (9,400) $ 297,500 $ 21,900 5,200 2,700 29,800 65,700 95,500 190,000 12,000 $ 297,500 $ 509,400 327,800 181,600 92,900 39,200 49,500 18,100 $ 31,400 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? Complete this question by entering your answers in the tabs below.
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 $ 99,000 42,800 89,600 5,600 Sales Cost of goods sold Gross profit 237,000 113,000 (17,600) $ 332,400 $ 15,600 9,400 1,500 26,500 31,100 57,600 238,600 36,200 $ 332,400 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 2020 $ 25,000 53,100 99,700 4,400 182,200 124,700 (9,400) $ 297,500 $ 21,900 5,200 2,700 29,800 65,700 95,500 190,000 12,000 $ 297,500 $ 509,400 327,800 181,600 92,900 39,200 49,500 18,100 $ 31,400 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? Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
$ 99,000
42,800
89,600
5,600
Sales
Cost of goods sold.
Gross profit
237,000
113,000
(17,600)
$ 332,400
$ 15,600
9,400
1,500
26,500
31,100
57,600
238,600
36,200
$ 332,400
CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
Operating expenses (excluding depreciation)
Depreciation expense
Income before taxes
Income taxes expense
Net income
2020
$ 25,000
53,100
99,700
4,400
182,200
124,700
(9,400)
$ 297,500
$ 21,900
5,200
2,700
29,800
65,700
95,500
190,000
12,000
$ 297,500
$ 509,400
327,800
181,600
92,900
39,200
49,500
18,100
$ 31,400
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?
Complete this question by entering your answers in the tabs below.
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