Question One

Marshall Pottery Barn is a privately owned importer of Indonesian pottery and garden supplies. The firm plans on paying a $1.55 per share dividend on each of its 5,700 ordinary shares. Thefirm's most recent balance sheet just before payment of the dividend looks as shownhere:

Cash $17,000 Accounts payable$22,700

Accounts receivable21,700 Notes payable 5,200

Inventories 29,100 Current liabilities27,900

Current assets 67,800

Fixed assets 130,000 Non-current liabilities32,600

Equity 137,800

Total assets 198,300 Total 198,300

What would happen to thefirm's balance sheet after payment of the cashdividend?