17. combined effect of the declaration and payment is to: of a cash dividend on a company's financial statements A. increase total liabilities and decrease stockholders' equity. B. increase total expenses and decrease assets. C. increase total and increase stockholders equity. D. decrease total assets and decrease stockholders equity. 18. Preferred stock differs from common stock in that preferred stock: A. has more voting power and, as such, control over the management of the company. C. less risky because preferred stockholders are paid dividends before common pays a tax-free dividend. D. has no preemptive rights or residual claims. company has net income of $5.6 million. Stockholders' equity at the beginning of the year is $32.55 million and, at the end of the year, it is s38.15 million. The only change to stockholders' equity came from net income. The Return on Equity ratio is approximately: A. 0.15. B. 0.16. C. 0.87. D. 6.64. 20. A company originally issues 18o.000 shares of stock at a price one year price is $40 per share, the number of outstanding shares is the company's net income for the year is unchanged, and The ratio at the of recent A. 0.0002. B. 24.22. C. 31.25. D. 0.000 21. Which of the following journal entries would have an effect on cash from operating activities? A. Recording bad debts. B. Recording depreciation. C. Recording loss on sale of investment. D. Recording cash paid for interest on long-term note payable