6.

A firm's balance sheet has the following entries:

Cash	$	8,000,000
Total liabilities		33,000,000
Common stock ($6 par; 1,400,000 shares outstanding)		8,400,000
Additional paid-in capital		700,000
Retained earnings		49,000,000

What will be each of these balance sheet entries after:

1. a four-for-one stock split? Round the par value to the nearest cent, the number of shares outstanding to the nearest whole number, and the other answers to the nearest dollar.

   Cash		$
   Total liabilities		$
   Common stock ($ par; shares outstanding)		$
   Additional paid-in capital		$
   Retained earnings		$

2. a $1.75 per share cash dividend? Use the original balance sheet from the problem statement. Round the par value to the nearest cent, the number of shares outstanding to the nearest whole number, and the other answers to the nearest dollar.

   Cash		$
   Total liabilities		$
   Common stock ($ par; shares outstanding)		$
   Additional paid-in capital		$
   Retained earnings		$

3. a 5 percent stock dividend (current price of the stock is $14 per share)? Use the original balance sheet from the problem statement. Round the par value to the nearest cent, the number of shares outstanding to the nearest whole number, and the other answers to the nearest dollar.

   Cash		$
   Total liabilities		$
   Common stock ($ par; shares outstanding)		$
   Additional paid-in capital		$
   Retained earnings		$

7. What effect will a one-for-three stock split have on the following items found on a firm's financial statements?

1. Earnings per share $3.33. Round your answer to the nearest cent.

   Initial amount	New amount	Effect
   $3.33	$	-Select-increasedecreaseno changeItem

2. Total equity $9,000,000. Round your answer to the nearest dollar.

   Initial amount	New amount	Effect
   $9,000,000	$	-Select-increasedecreaseno changeItem

3. Long-term debt $4,300,000. Round your answer to the nearest dollar.

   Initial amount	New amount	Effect
   $4,300,000	$	-Select-increasedecreaseno changeItem 6

4. Additional paid-in capital $1,492,000. Round your answer to the nearest dollar.

   Initial amount	New amount	Effect
   $1,492,000	$	-Select-increasedecreaseno changeItem

5. Number of shares outstanding 1,200,000. Round your answer to the nearest whole number.

   Initial amount	New amount	Effect
   1,200,000		-Select-increasedecreaseno changeItem

6. Earnings $4,000,000. Round your answer to the nearest dollar.

   Initial amount	New amount	Effect
   $4,000,000	$	-Select-increasedecreaseno changeItem

8. A firm has the following balance sheet:

Assets				Liabilities and Equity
Cash	$	5,000		Accounts payable	$	5,000
Accounts receivable		160,000		Long-term debt		88,000
Inventory		102,000		Common stock ($10 par;		45,000
				4,500 shares outstanding)
Plant and equipment		170,000		Additional paid-in capital		149,000
				Retained earnings		150,000
		$437,000				$437,000

1. Construct a new balance sheet showing the impact of a three-for-one split. If the current market price of the stock is $53, what is the price after the split? Round the par value and the market price after the split to the nearest cent, the number of shares outstanding to the nearest whole number, and the other answers to the nearest dollar.

   Assets				Liabilities and Equity
   Cash		$		Accounts payable		$
   Accounts receivable		$		Long-term debt		$
   Inventory		$		Common stock ($ par;		$
   				shares outstanding)
   Plant and equipment		$		Additional paid-in capital		$
   				Retained earnings		$
   		$				$

   Price of the common stock after the split: $

2. Construct a new balance sheet showing the impact of a 15 percent stock dividend. After the stock dividend, what is the new price of the common stock? Use the original balance sheet from the problem statement. Round the par value and the market price after the stock dividend to the nearest cent, the number of shares outstanding to the nearest whole number, and the other answers to the nearest dollar.

   Assets				Liabilities and Equity
   Cash		$		Accounts payable		$
   Accounts receivable		$		Long-term debt		$
   Inventory		$		Common stock ($ par;		$
   				shares outstanding)
   Plant and equipment		$		Additional paid-in capital		$
   				Retained earnings		$
   		$				$

   Price of the common stock after the stock dividend: $

9.

In Year 1, VF Corporation split its stock two for one. On the day prior to the split, the stock sold for $238.10. What is the anticipated price of the stock when the split is effective? Round your answer to the nearest cent.

$

On the day that the split was effective, VF stock closed at $119.35. What was the change in the price of the stock? Round your answer to the nearest cent. Use a minus sign to enter a negative value, if any.

$