Peters, Inc. wants to find out the maximum amount of cash dividends it can pay this year. The company has 250,000 shares outstanding currently. Its balance sheet is shown below: Assets Cash $ 412,500 Accounts Receivable 900,000 Fixed Assets 987,500 $2,300,000 Liabilities and Shareholders’ Equity Accounts Payable $ 445,000 Long-term Payable 280,000 Common Stock 600,000 Retained earnings 975,000 $2,300,000 What is the highest amount of dividends the firm could pay from a legal perspective? What is the maximum amount of dividends per share the firm could pay in terms of cash availability,?
Peters, Inc. wants to find out the maximum amount of cash dividends it can pay this year. The company has 250,000 shares outstanding currently. Its
Assets
Cash $ 412,500
Accounts Receivable 900,000
Fixed Assets 987,500
$2,300,000
Liabilities and Shareholders’ Equity
Accounts Payable $ 445,000
Long-term Payable 280,000
Common Stock 600,000
$2,300,000
What is the highest amount of dividends the firm could pay from a legal perspective?
What is the maximum amount of dividends per share the firm could pay in terms of cash availability,?
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