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Two accountants were discussing the performance of a retail business that earned revenue of $1,000,000 by selling goods and services that it had acquired for
Two accountants were discussing the performance of a retail business that earned revenue of $1,000,000 by selling goods and services that it had acquired for $600,000. A said We can afford to pay a dividend of $400,000. B said We should consider the current cost of inventory before deciding on dividends.
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