In order to pay a cash dividend, a company must have the board declare the dividend, have sufficient cash, and sufficient retained earnings. True or false? True Falso. In order to pay a cash dividend, a company must: have the board declare the dividend have management declare the dividend have a vote of the shareholders to determine the amount of the dividend reccive permission from the Securities Exchange Commission. ABC Company issues 100,000 share of its no par common stock for $20 per share. The journal entry would include: A credit to Common Stock of $2,000,000 A credit to Cash of $2,000,000 A credit to Retained Earnings of $2,000,000 A credit to Notes payable of $2.000,000 By law, if a company earns a profit they must pay the profits to the shareholders. True or false? True False