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The board of directors of Testa Incorporated has decided that they would like to declare a $400,000 cash dividend at some point in the near
The board of directors of Testa Incorporated has decided that they would like to declare a $400,000 cash dividend at some point in the near future. The company currently has Retained Earnings of $2,419,000 and a Cash balance of $827,000. They also have current liabilities totaling $436,000. What is missing in order for Testa to be able to pay a cash dividend?
A : approval of the executives
B : a healthy cash reserve
C : approval of the investors
D : adequate Retained Earnings
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