(Solved by Humans)-Problem 2-12A Cash Flow Roosevelt Inc., a consulting service, has a history of paying annual...

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Problem 2-12A  Cash Flow Roosevelt Inc., a consulting service, has a history of paying annual dividends of $1 per share. Management is trying to determine whether the company will have adequate cash on December 31, 2015, to pay a dividend if one is declared by the board of directors. The following additional information is available: •     All sales are on account, and accounts receivable are collected one month after the sale. Sales volume has been decreasing 5% each month. •     Operating expenses are paid in cash in the month incurred. Average monthly expenses are $10,000 (excluding the biweekly payroll). •     Biweekly payroll is $4,500, and it will be paid December 15 and December 31. •     Unearned revenue is expected to be earned in December. This amount was taken into consid- eration in the expected sales volume. LO1•4 • 8 Roosevelt Inc. Balance Sheet December 1, 2015 Cash $  15,000 Unearned revenue $    2,000 Accounts receivable 40,000 Note payable* 30,000 Computer equipment 120,000 Common stock—$2 par 50,000     Retained earnings 93,000   Total assets                                         $175,000 Total liabilities and stockholders’ equity                       $175,000   *The note payable plus 3% interest for six months is due January 15, 2016.   Required Determine the cash that Roosevelt will have available to pay a dividend on December 31, 2015. Round all amounts to the nearest dollar. Should management recommend that the board of directors declare a dividend? Explain.