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Chapter 18 Dividend Policy and Retained Earnings 8. Squash Delight Inc. has the following balance sheet: Stock split ane dividend (LO18-4) Assets Cash $ 100,000 300,000 ceivable . 600,000 $1,000,000 Fixed assets Total assets Liabilities $ 150,000 50,000 100,000 200,000 500,000 Accounts payable .. Notes payable Capital in excess of par.. Capital accounts $1,000,000 The firm's stock sells for $10 a share. Show the effect on the capital account(s) of a two-for-one stock split. Show the effect on the capital accounts of a 10 percent stock dividend. Part b is separate from part a. In part b, do not assume the stock split has taken place. Based on the balance in retained earnings, which of the two dividend plans is more restrictive on future cash dividends? a. b. c. 9. In doing a five-year analysis of future dividends, the Dawson Corporation Polic ratio