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The Shippecasse Company had a Current Ratio of 1:2. The Company paid a $10,000 cash dividend...

The Shippecasse Company had a Current Ratio of 1:2. The Company paid a $10,000 cash dividend to preferred shareholders that was previously declared. What is the effect of the payment journal entry on the current ratio and total stockholders' equity, respectively?

Select one:

a. Increase, Increase

b. Decrease, Decrease

c. Increase, No Effect

d. No Effect, Increase

e. Decrease, No Effect

Solutions

Expert Solution

ekkarill92 answered 3 months ago
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