FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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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