CRUZ, INCORPORATEDComparative Balance SheetsAt December 3120212020Assets Cash$ 99,300$ 24,900Accounts receivable, net42,60052,800Inventory89,10099,200Prepaid expenses5,6004,500Total current assets236,600181,400Furniture113,000127,500Accumulated depreciation—Furniture(17,500)(9,600)Total assets$ 332,100$ 299,300Liabilities and Equity Accounts payable$ 15,700$ 22,000Wages payable9,4005,000Income taxes payable1,5002,800Total current liabilities26,60029,800Notes payable (long-term)30,90074,300Total liabilities57,500104,100Equity Common stock, $5 par value241,200192,600Retained earnings33,4002,600Total liabilities and equity$ 332,100$ 299,300 CRUZ, INCORPORATEDIncome StatementFor Year Ended December 31, 2021Sales$ 512,300Cost of goods sold329,700Gross profit182,600Operating expenses (excluding depreciation)93,500Depreciation expense39,400Income before taxes49,700Income taxes expense18,100Net 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?

STATEMENT OF SHAREHOLDERS EQUITY Statement of Shareholders Equity is also Known as Changes in…

Answered: 1. Assume that all common stock is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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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