Jan Kimler maintains that adequate cash is the only requirement for the declaration of a cash dividend. Is Jan correct? Explain.
Answer to relevant QuestionsFarley Inc. declares a $55,000 cash dividend on December 31, 2014. The required annual dividend on preferred stock is $10,000. Determine the allocation of the dividend to preferred and common stockholders assuming the ...Dean Percival, who owns many investments in common stock, says, “I don’t care what a company’s net income is. The stock price tells me everything I need to know!” How do you respond to Dean?Whetzel Corporation reported net income of $152,000, declared dividends on common stock of $50,000, and had an ending balance in retained earnings of $360,000. Common stockholders’ equity was $700,000 at the beginning of ...On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred.Apr. 1 Issued 25,000 additional shares ...Dirk Company reported the following balances at December 31, 2013: common stock $500,000, paid-in capital in excess of par value—common stock $100,000, and retained earnings $250,000. During 2014, the following ...
Post your question