On December 31,2015,Pilozzi Company Has the Following Information Available

question 7

Multiple Choice

On December 31,2015,Pilozzi Company has the following information available: On December 31,2015,the Board of Directors wants to declare a cash dividend of $2 million.Can it be done?

• A)Yes,if they can borrow some money,or liquidate some assets.
• B)No,the cash balance is below $2 million.
• C)No,Retained Earnings is below $2 million.
• D)No,Cash and Retained Earnings are both below $2 million.

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