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Question - Donald's Inc. would like to declare dividends by distributing inventory. Partial financial information for Donald's Inc. is below.
Cash balance $2,000
Inventory $20,000
Retained Earnings $10,000
Accounts Receivable $7,500
Dividends receivable $1,200
Shareholder's equity $129,000
What is the maximum property dividend that Donald's Inc. can declare and pay given the above financial information?
What is your assessment of the company's financial performance in its first year of operations
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