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Showing posts with label Russel Inc. Show all posts
Showing posts with label Russel Inc. Show all posts

Thursday, July 30, 2015

The Management of Russel Inc. is trying to decide whether it can increase its dividend

BE13-11 The Management of Russel Inc. is trying to decide whether it can increase its dividend. During the current year, it reported net income of $875,000. It had cash provided by operating activities of $643,000, paid cash dividends of $80,000, and had capital expenditures of $280,000.

Compute the company’s free cash flow, and discuss whether an increase in the dividend appears warranted. What other factors should be considered?

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