9. Squash Delight, Inc., has the following balance sheet:

The firm has a market price of $10 a share.

a. Show the effect on the capital account(s) of a two-for-one stock split.

b. Show the effect on the capital accounts of a 10 percent stock dividend. Part b is separate from part

a. In part b do not assume the stock split has taken place.

c. Based on the balance in retained earnings, which of the two dividend plans is more restrictive on future cash dividends?

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Cash Accounts receivable Fixed assets Total assets Accounts payable Assets $ 100,000 Liabilities Notes payable.... Common stock (50,000 shares @ $2 par) Capital Capital in excess of par accounts Retained earnings 300,000 600,000 $1,000,000 $ 150,000 50,000 100,000 200,000 500,000 $1,000,000