Salashar,Inc.'s balance sheet is as follows:
Salashar decides to pay a dividend.Which of the following statements is MOST correct?
A) The dividend cannot exceed $1,000,000,the amount of cash available.
B) The dividend cannot exceed $1,700,000,the amount of net working capital.
C) The dividend cannot exceed $600,000,the amount of retained earnings.
D) The dividend cannot exceed $11,000,000,the amount of total assets.
Correct Answer:
Verified
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