Brief Exercise 8-7 Effect of stock dividends on financial statements Hernandez Corporation issued an 8 percent stock dividend on 40,000 shares of its $5 par common stock. At the time of the dividend, the market value of the stock was $10 per share. Required Show the effects of the stock dividend on the financial statements using a horizontal statements model. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). An example of a horizontal statements model is shown below