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Question - share cash dividend on April 1, Year One, to be paid to owners of record on April 17, Year One, with the checks being distributed on April 29, Year One.
Prior to April 1, the company had issued 100,000 shares of common stock but held 10,000 treasury shares. Another 10,000 shares were repurchased on April 4, Year One. What is the decrease in retained earnings created by this dividend?
a. $80,000
b. $90,000
c. $100,000
d. -0-
Receipts are expected to be 60 per cent in the month of sale and 38 per cent in the month following the sale. Prepare cash receipts for December
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