17 Required information [The following information apples to the questions displayed below) Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-stock spit. 2 2. The primary reason companies declare a large stock dividend or a stock split is to lower the trading price of the stock to a more acceptable trading range, making it attractive to a larger number of potential investors True or False True False 16 Required Information The following information applies to the questions displayed below) Pert12 73 Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2.for-1 stock split Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places.) Before Afer 100% Stock Dividend Aner 2.for Stock Split $ 1.100 0 Common stock, 51 par value Additional paid in capital Total poldina Retained earnings Total codes Shares outstanding Par value per share Share price 43.000 44.100 22.250 5. 66,350 1.100 5 1.00 $ 58 0 $ 0 Check 15 ! Required information [The following information applies to the questions displayed below) 12 of 2 3 Major League Apparel has two classes of stock authorized: 4%, $10 par preferred, and St par value common. The following transactions affect stockholders' equity during 2018, its first year of operations: January 2 Issue 120,000 shares of common stock for $53 per share. February 14 Issue 43.000 shares of preferred stock for $13 per share. May 8 Repurchase 12.000 shares of its own common stock for $43 per share. May 31 Reissue 6.000 shares of treasury stock for $48 per share December 1 Declare a cash dividend on its common stock of $0.40 per share and a $17.200 (4% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint Dividends are not paid on treasury stock) December 30 Pay the cash dividends declared on December 1 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2018. Net income for the year was $473,000. (Amounts to be deducted should be indicated by a minus sign.) MAJOR LEAGUE APPAREL Balance Sheet Stockholders Equity Section December 11, 2017 Stockholders' equity