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Blake's Bakery After a few successful years, the Blakes decided to open additional locations. Since the expansion, Ben has had a very profitable year and
Blake's Bakery After a few successful years, the Blakes decided to open additional locations. Since the expansion, Ben has had a very profitable year and determined the bakery has more than $3 million in cash generated by operating activities. After reviewing the finances and business operation requirements with Bailey, they both agree the $3 million is not needed in the business. Ben and Bailey are thinking about paying the excess to the stakeholders as a special dividend. Burton, the vice president of the bakery, doesn't like the suggestion. Burton states that the stock prices have consistently gone up over the last year and believes enough money has already been given to the stockholders of the bakery. Burton suggests that the overage should go to the employees who have dedicated many hours every day, sometimes 7 days a week, to make the company successful. Burton would like the employees to receive bonuses instead of the extra money going to the stakeholders. Week 6 Assignment: Stockholders Paper Explore Ben and Bailey Blake's information in Accountopia. Then, in a one-page paper, discuss the Blake's responsibility to both the stockholders and their employees. To which group would you recommend Ben and Bailey give the $3 million? Justify your response
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