Author Question: Salashar, Inc.'s balance sheet is as follows: Cash 1,000,000 Current Liabilities 1,300,000 Other ... (Read 177 times)

vHAUNG6011 · **on:** Jul 10, 2018

Salashar, Inc.'s balance sheet is as follows:

Cash 1,000,000 Current Liabilities 1,300,000
Other Current Assets 2,000,000 Long-term Debt 4,100,000
Long-term Assets 8,000,000 Common Stock 5,000,000
Retained Earnings 600,000
Total Assets 11,000,000 Total Liab. And Equity 11,000,000
Salashar 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 600,000, the amount of retained earnings.
C) The dividend cannot exceed 11,000,000, the amount of total assets.
D) The dividend cannot exceed 1,700,000, the amount of net working capital.

Question 2

WSM Wine Importers, Inc. purchased 75,000 cases of French wine at a cost of 6,000,000 euros. If the
current exchange rate is 0.7576 euros to the U.S. dollar, what is the purchase price of the wine in
U.S. dollars?

A) 9,684,148 B) 8,350,012 C) 9,328,651 D) 7,919,747