Question One

Marshall Pottery Barn is a privately owned importer of Indonesian pottery and garden supplies. The firm plans on paying a ?$1.55 per share dividend on each of its 5,700 ordinary shares. The? firm's most recent balance sheet just before payment of the dividend looks as shown?here:

Cash      $17,000  Accounts payable    $22,700

Accounts receivable   21,700  Notes payable       5,200

Inventories      29,100  Current liabilities     27,900

Current assets     67,800  

Fixed assets     130,000  Non-current liabilities   32,600 

Equity      137,800

Total assets     198,300 Total      198,300

What would happen to the? firm's balance sheet after payment of the cash? dividend?