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Note 6. The indenture relating to the long-term debt contains certain provisions regarding the maintenance of working capital, the payment of dividends, and the purchase of the company's capital stock. The most restrictive of these provisions requires that: (a) working capital will be maintained at not less than $4,500,000; (b) the company cannot pay cash dividends or purchase its capital stock, if after it has done so, working capital is less than $5,000,000; and (c) cash dividends paid since January 1, 20X0, plus the excess of capital stock purchased over the pro- ceeds of stock sold during the same period, cannot exceed 70 percent of net earnings (since January 1, 20X0) plus $250,000. At December 31, 20X1, $2,441,291 of retained earnings were available for the payment of dividends under this last provision, as follows: Net earnings since January 1, 20X0 70 percent of above Additional amount available under indenture Cash dividends paid since January 1, 20X0 Retained earnings available December 31, 20X1 $5,478,127 $3,834,688 250,000 $4,084,688 1,643,397 $2,441,291