When is company legally barred from paying cash dividends


Response to the following questions:

1. In what way does the stockholders' equity section of a balance sheet identify the sources of the assets?

2. What factors affect the Retained Earnings balance of a corporation?

3. Is it possible for a firm to have a large Retained Earnings balance and no cash? Explain.

4. When is a company legally barred from paying cash dividends?

If possible, please give examples to better understand your answers.

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Financial Accounting: When is company legally barred from paying cash dividends
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