A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative
Balance Sheets December 31, 2015 2014
Assets
Cash $ 94,800 $ 24,000
Accounts receivable, net 41,000 51,000
Inventory 85,800 95,800
Prepaid expenses 5,400 4,200
Total current assets 227,000 175,000
Furniture 109,000 119,000
Accum. depreciation—Furniture (17,000) (9,000)
Total assets $ 319,000 $ 285,000
Liabilities and Equity
Accounts payable $ 15,000 $ 21,000
Wages payable 9,000 5,000
Income taxes payable 1,400 2,600
Total current liabilities 25,400 28,600
Notes payable (long-term) 29,000 69,000
Total liabilities 54,400 97,600
Equity Common stock, $5 par value 229,000 179,000
Retained earnings 35,600 8,400
Total liabilities and equity $ 319,000 $ 285,000
CRUZ, INC.
Income Statement
For Year Ended December 31, 2015
Sales $ 488,000
Cost of goods sold 314,000
Gross profit 174,000
Operating expenses
Depreciation expense $ 37,600
Other expenses 89,100 126,700
Income before taxes 47,300
Income taxes expense 17,300
Net income $ 30,000
1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2015?
2. Assume that no additional notes payable are issued in 2015. What cash amount is paid to reduce the notes payable balance in 2015?

1. $2,800

2. $40,000

Explanation:

1. The computation of cash dividends is paid during 2015 is shown below:-

                                      Retained earnings

Dividend paid               $2,800         Beginning balance   $8,400

($8,400 + $30,000

- $35,600)                                          Net income                $30,000

Total                              $2,800                                            $38,400

                                                          Ending balance         $35,600

Therefore cash dividends is paid during 2015 is 2,800

2. The computation of cash amount is paid to reduce the notes payable balance in 2015 is shown below:-

                                      Notes payable

Cash paid                        $40,000   Beginning balance   $69,000

($69,000 - $29,000)

Total                                 $40,000                                   $69,000

                                                         Ending balance       $29,000

Therefore cash amount is paid to reduce the notes payable balance

in 2015  is $40,000

idk just tryinna get some points skskksksks

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23