38. The effect of the declaration of a cash dividend by the board of directors is to

Increase Decrease

a. Stockholders equity Assets

b. Assets Liabilities

c. Liabilities Stockholders equity

d. Liabilities Assets

39. Racer Corporations December 31, 2014 balance sheet showed the following:

8% preferred stock, $20 par value, cumulative,

40,000 shares authorized; 20,000 shares issued $ 400,000

Common stock, $10 par value, 4,000,000 shares authorized;

2,600,000 shares issued, 2,560,000 shares outstanding 26,000,000

Paid-in capital in excess of par value preferred stock 80,000

Paid-in capital in excess of par value common stock 36,000,000

Retained earnings 10,200,000

Treasury stock (30,000 shares) 840,000

Racers total stockholders equity was

a. $73,520,000.

b. $62,480,000.

c. $72,680,000.

d. $71,840,000.