(Cash dividends) Marshall Pottery Barn is a privately owned importer of Mexican pottery and garden supplies. The firm plans on paying a $1.43 per share dividend on each of its 6,000 shares of common stock. The firm's most recent balance sheet just before payment of the dividend looks like the following:
A. What would happen to the firm's balance sheet after payment of the cash dividend?
B. If the above balance sheet also represented market values (as well as book values), how would it change following the payment of the cash dividend?
A. What would happen to the firm's balance sheet after payment of the cash dividend? The accounting entry would be:
(Select from the drop-down menus and round to the nearest dollar.)
Cash 18,000
Accounts receivable 22,500
Inventories 30,700
Accounts payable 71,200
Notes payable 5,000
Current liabilities 129.800
Current assets 201,000
Long-term debt 22,200
Fixed assets 4,900
Equity 27,100
Total assets 139,900
Total 201,000