Orac Company has outstanding shares of $ par value, cumulative preferred stock and shares of $ par value common stock. During its first three years in business, it declared and paid no cash dividends in the first year, $ in the second year, and $ in the third year.Which of the following describes the effect of dividend declaration on the balance sheet assuming dividends are declared and paid on the same day
Orac Company has outstanding shares of $ par value, cumulative preferred stock and shares of $ par value common stock. During its first three years in business, it declared and paid no cash dividends in the first year, $ in the second year, and $ in the third year.Which of the following describes the effect of dividend declaration on the balance sheet assuming dividends are declared and paid on the same day
Increase current liabilities and increase stockholders equity
Decrease current assets and decrease stockholders equity
Decrease current liabilities and increase stockholders equity
No impact
