Radon Corp.'s balance sheet is as follows:
Radon 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

Question

Radon Corp.'s balance sheet is as follows:
 Radon 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

Quizplus · Accepted Answer

The Answer of Radon Corp.'s balance sheet is as follows:
 Radon 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

Radon Corp.'s Balance Sheet Is as Follows