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1. Squash Delight Inc. had the following balance sheet: Assets Cash. $100,000 Accounts receivable $300,000 Capital assets $600,000 Total assets... $1,000,000 Liabilities Accounts payable $150,000
1. Squash Delight Inc. had the following balance sheet: Assets Cash. $100,000 Accounts receivable $300,000 Capital assets $600,000 Total assets... $1,000,000 Liabilities Accounts payable $150,000 Notes payable $50,000 Common stock 100,000 shares $300,000 Retained earnings $500,000 $1.000.000 The firm has a market price of 510 a share. Show the Hect on the equity accounts of a two-for-one stock split b. Show the effect on the equity account of a 10 percent stock didend. Part bis separate from art in our bdo not assume the stock split has taken place Show the effect on the equity account of a $50,000 cash dividend. Based on the balance in the earnings, which of the two dividend pas more restricove on future cash divided 2 show the red on the equity accounts of a two for one stock split Shareholder's Equity Common Stod Retained Earning Shares Show the effect on the equity account of a 10 percent stock dividend. Part bis separate from parta. In part de not assume the stock split has taken place Share older's Equity Common Stock Shares Retained Earning Show the effect on the equity account of a 550.000 cash dividend Shareholders Equity Common stock Retained Earnings Shares d Based on the balance in retained in which of the tidend plan is more restrictive on future cash dividende
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