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A firm's balance sheet shows the following: Cash $200,000 Total Assets $500,000 Common Stock ( 100,000 shares outstanding, $1 par) $100,000 Additional Paid-in Capital $25,000
A firm's balance sheet shows the following:
Cash $200,000
Total Assets $500,000
Common Stock ( 100,000 shares outstanding, $1 par) $100,000
Additional Paid-in Capital $25,000
Retained Earnings $75,000
What are :
a) the firm's liabilities
b) if the firm splits the stock two for one, what is the impact on retained earnings?
c) if the firm distributes a cash dividend of $2 per share, reconstruct the balance sheet accounts
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