Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me with this question thank you. Please write down the calculation process If possible. 16-9 (Cash dividends) MarshalliPottery Barn is a privately owned

Please help me with this question thank you. Please write down the calculation process If possible.

image text in transcribed
16-9 (Cash dividends) MarshalliPottery Barn is a privately owned importer of Indenesian pottery and garden supplies. The rm planson paying a $1.50 per share dividend on each of its 5000 ordinary shares. The rm's most recent balance sheet, just before paymentof the dividend, is shown below: Cash $ 18 000 Accounts receivable 22 000 Inventories ' 30 000 Current assets 70 000 Fixed aSsets 130000 -'- Total assets . ' $200000 " Accounts payable Notes payable _ Current liabilities Long-term debt 5 22 000 5000 27 000 33 000 140 000 $209 00.9 (a) What would happen to the firm'sbalanee sheet after payment of the cash dividend? (b) If the above balance sheet also represented market values (as well as book values), how would it change following the payment of the cash dividend

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elementary Statistics

Authors: Mario F. Triola

3rd Canadian Edition

032122597X, 978-0321225979

Students also viewed these Finance questions