On March 1, Year 1, Gilmore Incorporated declared a cash div…
On March 1, Year 1, Gilmore Incorporated declared a cash dividend on its 1,500 outstanding shares of $50 par value, 6% preferred stock. The dividend will be paid on May 1, Year 1 to the stockholders of record as of April 1, Year 1.How will the May 1 payment of the dividend affect the financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net incomeA. =4,500+(4,500) − = (4,500) FAB.(4,500)=(4,500)+ − = (4,500) FAC.(9,000)=(9,000)+ − = (9,000) IAD. = + − =