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The 2019 financial statements for Flying H Company report retained earnings and cash of $10 million and $20 million, respectively. During 2019, the firm paid

The 2019 financial statements for Flying H Company report retained earnings and cash of $10 million and $20 million, respectively. During 2019, the firm paid a cash dividend of $5 million. Other things constant, if Flying H had not paid the dividend, its:

  • Retained earning would be $15mm and cash would be $25mm
  • Retained earning would be $10mm and cash would be $25mm
  • Retained earning would be $5mm and cash would be $15mm
  • Retained earning would be $15mm and cash would be $15mm

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