Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Salashar, Inc.'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
Salashar, Inc.'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 Retained Earnings $ 600,000 Total Assets $11,000,000 Total Liab. And Equity $11,000,000 Salashar decides to pay a dividend. Which of the following statements is MOST correct? (Points : 2) |
The dividend cannot exceed $1,000,000, the amount of cash available. The dividend cannot exceed $1,700,000, the amount of net working capital. The dividend cannot exceed $600,000, the amount of retained earnings. The dividend cannot exceed $11,000,000, the amount of total assets.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started