Target, Inc., started the year with total assets of $400,000 and total liabilities of $240,000.Net income for the year is $120,000 and dividends declared and paid during the year are $90,000.
A) What is the amount of Target's total stockholders' equity at the end of the year?
B) Could Target have paid additional dividends during the year? Explain your answer.

Question

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The Answer of Target, Inc., started the year with total assets of $400,000 and total liabilities of $240,000.Net income for the year is $120,000 and dividends declared and paid during the year are $90,000.
A) What is the amount of Target's total stockholders' equity at the end of the year?
B) Could Target have paid additional dividends during the year? Explain your answer.