On december 31 of the current year, pilozzi company has the following information available:
common stock $5 million
additional paidminusin capital $4 million
retained earnings $1 million
cash $1 million
investment in trading securities $50,000

on december 31 of the current year, can the board of directors declare and pay a cash dividend of $ 2 million?

On December 31 of the current year, can the Board of Directors declare and pay a cash dividend of $ 2 million

If the company don´'t have enough cash on hand to distribute the previously announced sum to shareholders, it may have to borrow funds to honor the dividend payment.

Explanation:

Companies can pay dividends in  cash or additional shares.

If the company don´'t have enough cash on hand to distribute the previously announced sum to shareholders, it may have to borrow funds to honor the dividend payment.

answer; burned it;