Generally, Before a Company Can Distribute Cash Dividends to Its

Generally, before a company can distribute cash dividends to its shareholders, certain requirements must be fulfilled. Which of the following must be met? #1 A credit balance in the Retained Earnings Account
#2 A formal dividend authorization by the board of directors
#3 The company must have sufficient cash available to pay the dividend

A) #1 only
B) #2 only
C) #3 only
D) #1 and 2
E) all 3 must be met