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Radon Corp's balance sheet is as follows: Cash $1,000,000 Current Liabilities $1,300,000 Other Current Assets $2,000,000 Long-term Debt $4,100,000 Long Term assets $8,000,000 Common Stock
Radon Corp's balance sheet is as follows:
Cash $1,000,000 | Current Liabilities $1,300,000 |
Other Current Assets $2,000,000 | Long-term Debt $4,100,000 |
Long Term assets $8,000,000 | Common Stock $5,000,000 |
Total Assets $11,000,000 | Retained Earnings $600,000 |
Total Liab and Equity $11,000,000 |
Radon decides to pay a dividend. Which of the follow statements is most correct?
a) The dividend cannot exceed $11,000,000, the total amount of total assets
b) The dividend cannot exceed $1,700,000, the amount of net working capital
c) The dividend cannot exceed $1,000,000, the amount of cash available
d) The dividend cannt exceed $600,000, the amount of retained earnings
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