Question One
Marshall Pottery Barn is a privately owned importer of Indonesian pottery and garden supplies. The firm plans on paying a ?$1.55 per share dividend on each of its 5,700 ordinary shares. The? firm's most recent balance sheet just before payment of the dividend looks as shown?here:
Cash $17,000 Accounts payable $22,700
Accounts receivable 21,700 Notes payable 5,200
Inventories 29,100 Current liabilities 27,900
Current assets 67,800
Fixed assets 130,000 Non-current liabilities 32,600
Equity 137,800
Total assets 198,300 Total 198,300
What would happen to the? firm's balance sheet after payment of the cash? dividend?