Question: Given the following balance sheet obtained from a Model 4 game and assuming the company will obtain additional bank loan of $500,000 in the following
Given the following balance sheet obtained from a Model 4 game and assuming the company will obtain additional bank loan of $500,000 in the following round, what is the maximum amount of dividend can this company pay in the following round?
Balance Sheet Assets Cash Finished goods inventory value "Standard unit price $3.15 Raw material inventory value *Unit value $1.104 Equipment book value > "Replacement cost $8,691,345.00 Total assets Liabilities and owners' equity Bank loan Overdraft (Abnormal liabilities) Total liabilities Owners' equity Total liabilities and owners' equity $333,075 SO $2,464,419 $8,092,500 $10,889,994 $0 SO $0 $10,889,994 $10,889,994
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