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A firm has the following balance sheet: $ Assets Cash Accounts receivable Inventory $ 20,000 152,000 111,000 Liabilities and Equity Accounts payable Long-term debt Common
A firm has the following balance sheet: $ Assets Cash Accounts receivable Inventory $ 20,000 152,000 111,000 Liabilities and Equity Accounts payable Long-term debt Common stock ($10 par; 3,500 shares outstanding) Additional paid-in capital Retained earnings 20,000 106,000 35,000 Plant and equipment 170,000 150,000 142,000 $453,000 $453,000 a. Construct a new balance sheet showing the impact of a three-for-one split. If the current market price of the stock is $56, 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 Cash Accounts receivable Inventory $ $ $ $ Liabilities and Equity Accounts payable Long-term debt Common stock ($ par; shares outstanding) Additional paid-in capital Retained earnings Plant and equipment $ $ $ $ $ Price of the common stock after the split: $ ($ par; shares outstanding) Additional paid-in capital Retained earnings Plant and equipment $ $ $ $ $ Price of the common stock after the split: $ b. 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 Cash $ $ $ Accounts receivable Inventory $ $ $ Liabilities and Equity Accounts payable Long-term debt Common stock ($ par; shares outstanding) Additional paid-in capital Retained earnings Plant and equipment $ $ $ $ $ Price of the common stock after the stock dividend: $
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