mparative 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 $ 94,800 41,000 Sales Cost of goods sold Gross profit 85,800 5,400 227,000 109,000 (17,000) $ 319,000 $ 15,000 9,000 1,400 25,400 29,000 54,400 229,000 35,600 $ 319,000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 6 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 2020 $ 24,000 51,000 95,800 4,200 175,000 119,000 (9,000) $285,000 $ 21,000 5,000 2,600 28,600 69,000 97,600 179,000 8,400 $ 285,000 $ 488,000 314,000 174,000 89, 100 37,600 47,300 17,300 $ 30,000 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?
mparative 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 $ 94,800 41,000 Sales Cost of goods sold Gross profit 85,800 5,400 227,000 109,000 (17,000) $ 319,000 $ 15,000 9,000 1,400 25,400 29,000 54,400 229,000 35,600 $ 319,000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 6 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 2020 $ 24,000 51,000 95,800 4,200 175,000 119,000 (9,000) $285,000 $ 21,000 5,000 2,600 28,600 69,000 97,600 179,000 8,400 $ 285,000 $ 488,000 314,000 174,000 89, 100 37,600 47,300 17,300 $ 30,000 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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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
$ 94,800
41,000
85,800
5,400
Sales
Cost of goods sold
Gross profit
227,000
109,000
(17,000)
$ 319,000
$ 15,000
9,000
1,400
25,400
29,000
54,400
229,000
35,600
$ 319,000
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
$ 24,000
51,000
95,800
4, 200
175,000
119,000
(9,000)
$285,000
$ 21,000
5,000
2,600
28,600
69,000
97,600
179,000
8,400
$ 285,000
$ 488,000
314,000
174,000
89, 100
37,600
47,300
17,300
$ 30,000
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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