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Can you please help with B? Thanks! Squash Delight Inc. has the following balance sheet: $ 90,000 339,000 732,000 $1,161,000 Assets Cash Accounts receivable Fixed
Can you please help with B? Thanks!
Squash Delight Inc. has the following balance sheet: $ 90,000 339,000 732,000 $1,161,000 Assets Cash Accounts receivable Fixed assets Total assets Liabilities Accounts payable Notes payable Common stock (100,000 shares @ $2 par) Capital in excess of par Retained earnings Total liabilities & owners' equity $ 302,000 52,000 200,000 100,000 507,000 $1,161,000 The firm's stock sells for $10 a share. a. Show the effect on the capital accounts of a two-for-one stock split. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) Effect of Stock Split Common stock Capital excess of par Retained earnings Total equity | $ $ $ $ 200,000 100,000 507,000 807,000 b. Show the effect on the capital accounts of a 10 percent stock dividend. Part bis separate from part a. In part b, do not assume the stock split has taken place. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) Effect of Stock Dividend Common stock Capital excess of par Retained earnings Total equity c. Based on the balance in retained earnings, which of the two dividend plans is more restrictive on future cash dividends? Stock dividend Stock splitStep by Step Solution
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