Chapter 18 Dividend Policy and Retained Earnings 8. Squash Delight Inc. has the following balance sheet: Stock split dividend (LO18-4) $ 100,000 300,000 600,000 $1,000,000 Assets Cash Accounts receivable .. Fixed assets..... Total assets ...... Liabilities Accounts payable Notes payable Common stock (50,000 shares a $2 par) Capital in excess of par (Retained earnings ....... $ 150,000 50,000 100,000 200,000 500,000 $1,000,000 Capital accounts The firm's stock sells for $10 a share. Q. Show the effect on the capital account(s) of a two-for-one stock split. b. Show the effect on the capital accounts of a 10 percent stock dividend. Part b is separate from part a. In part b, do not assume the stock split has taken place. C. Based on the balance in retained earnings, which of the two dividend plans is more restrictive on future cash dividends? dende the Ducon Corporation Doli