Both balance sheets shown in the following table were dated as of December 3 1 , 3 1 , Year 3 . 3 . Balance

Both balance sheets shown in the following table were dated as of December $31,$ Year $3.$

Balance Sheets as of December 31, Year 3

Allen Company	White Company
Assets
Cash: $10,000	$0
Land: $0	$12,000
Total Assets: $10,000	$12,000
Liabilities & Stockholders’ Equity
Liabilities: $7,500	$3,000
Common Stock: $2,000	$7,200
Retained Earnings: $500	$1,800
Total Liabilities & Equity: $10,000	$12,000

Required:

1. Based only on the information shown in the balance sheets, can Allen Company pay a $2,000 cash dividend?

2. Based only on the information shown in the balance sheets, can White Company pay a $1,000 cash dividend?

3. Reconstruct the accounting equation for each company using percentages.