Baldwin Corporation

Excerpts from the Statement of Financial Position for Baldwin Corporation as of September 30, Year 5, are presented below.

Cash	$ 950,000
Accounts receivable (net)	1,675,000
Inventories	2,806,000
Total current assets	$5,431,000

Accounts payable	$1,004,000
Accrued liabilities	785,000
Total current liabilities	$1,789,000

The Board of directors of Baldwin Corporation met on October 4, Year 5, and declared regular quarterly cash dividends amounting to $750,000 ($0.60 per share). The dividend is payable on October 25, Year 5, to all shareholders of record as of October 12, Year 5.

Assume that the only transactions to affect Baldwin Corporation during October Year 5 are the dividend transactions and that the closing entries have been made.

Refer to the Baldwin Corporation example. If the dividend declared by Baldwin Corporation had been a 10 percent stock dividend instead of a cash dividend, Baldwins current liabilities would have been

a.	decreased by the dividend declaration and increased by the dividend distribution.
b.	unchanged by the dividend declaration and increased by the dividend distribution.
c.	unchanged by the dividend declaration and decreased by the dividend distribution.
d.	unchanged by either the dividend declaration or the dividend distribution.
e.	none of the above.