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Radon Corp.'s Balance Sheet Is as Follows

Question 42

Multiple Choice

Radon Corp.'s balance sheet is as follows:
Radon Corp.'s balance sheet is as follows: Radon decides to pay a dividend.Which of the following statements is most correct? A) The dividend cannot exceed $1,000,000, the amount of cash available B) The dividend cannot exceed $1,700,000, the amount of net working capital C) The dividend cannot exceed $600,000, the amount of retained earnings D) The dividend cannot exceed $11,000,000, the amount of total assets Radon decides to pay a dividend.Which of the following statements is most correct?


A) The dividend cannot exceed $1,000,000, the amount of cash available
B) The dividend cannot exceed $1,700,000, the amount of net working capital
C) The dividend cannot exceed $600,000, the amount of retained earnings
D) The dividend cannot exceed $11,000,000, the amount of total assets

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