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1. Analyze the effects of alternative distributions on stockholders' equity. ? VIEW Cash dividends, stock dividends, and stock splits - Excel FORMULAS DATA % REVIEW
1. Analyze the effects of alternative distributions on stockholders' equity. ? VIEW Cash dividends, stock dividends, and stock splits - Excel FORMULAS DATA % REVIEW Alignment Number Conditional Format as Cell Formatting Table Styles FILE HOME INSERT PAGE LAYOUT Calibri 11 A A Pastel BIU Clipboard Font A1 X fx Styles Cells Editing At December 31, Artists Unlimited Company had the following 3 x Sign In 4 B C D E 1 At December 31, Artists Unlimited Company had the following 2 stockholder's equity components that would be part of the balance sheet: 3 100% 4 Stock 5 Stockholders' Equity At Dec 31 Dividend 2 for 1 Stock Split $5,000 Cash Dividend. 6 Contributed Capital: 7 Number of common shares outstanding 5,000 8 Par value per common share $ 1.00 9 Common Stock, at par $ 5,000 10. Additional Paid in Capital 745,000 11 Total Contributed Capital 750,000 12 Retained Earnings 980,000 13 Total Stockholders' Equity $ 1,730,000 14 15 16 Required: 17 The company is considering 3 alternative distributions to stockholders. Consider each alternative independently of the others. 18 Complete the table above and show the resulting balances on the stockholders' equity section as a result of these distributions. www. 15 16 Required: 17 The company is considering 3 alternative distributions to stockholders. Consider each alternative independently of the others. 18 Complete the table above and show the resulting balances on the stockholders' equity section as a result of these distributions. 19 Use only cell references in formulas. Use cells C3, D3, and E3 as appropriate. Do not reference cells from one alternative in another alternative. 20 21 1) Issue a 100% stock dividend. 22 OR 23 2) Execute a 2-for-1 stock split. 24 OR 25 3) Distribute a $5,000 cash dividend. 26 27 28 29
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