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Phillips Rock and Mud is trying to determine the maximum amount of cash dividends it...

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Accounting

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Phillips Rock and Mud is trying to determine the maximum amount of cash dividends it can pay this year. Assume its balance sheet is as follows: Assets Cash 323.000 851,000 Accounts receivable Fixed assets 992,000 2,166,000 Total assets Liabilities and Stockholders' Equity 510,000 Accounts payable Long term payable 296,000 280,000 Common stock (280,000 shares at $1 par) 1,080,000 Retained earnings Total liabilities and stockholders equity 2,166,000 a 1. From a legal perspective, what is the maximum amount of dividends per share the firm could pay? (Do not round intermediate calculations and round your answer to 2 decimal places.) Dividends per share a-2. Is this realistic? O Yes

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