Question
Donald's Inc. would like to declare dividends by distributing inventory. Partial financial information for Donald's Inc. is below. Cash balance $ 52,000 Inventory $ 20,000
Donald's Inc. would like to declare dividends by distributing inventory. Partial financial information for Donald's Inc. is below.
| Cash balance | $ | 52,000 |
| Inventory | $ | 20,000 |
| Retained Earnings | $ | 10,000 |
| Accounts Receivable | $ | 7,500 |
| Dividends receivable | $ | 1,200 |
| Shareholder's equity | $ | 129,000 |
What is the maximum property dividend that Donald's Inc. can declare given the above financial information?
Multiple Choice
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$20,000
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$1,200
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$52,000
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$129,000
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None of the other alternatives are correct
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The Process Approach Audit Checklist For Manufacturing
Authors: Karen Welch
1st Edition
0873896440, 978-0873896443
