Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Firm A had the following selected items on its balance sheet: Cash $ 2 7 , 0 0 0 , 0 0 0 Common stock

Firm A had the following selected items on its balance sheet:
Cash $ 27,000,000
Common stock ($60 par; 1,600,000 shares outstanding)96,000,000
Additional paid in capital 11,200,000
Retained earnings 58,000,000
Part A: How would each of these accounts appear after: a cash dividend of $1.5 per share? Round the number of shares outstanding to the nearest whole number and the other answers to the nearest dollar.
find what the cash is
find the common stock price par and its shares outstanding
find the additional paid in capital
find the retained earning
Part B
Firm A had the following selected items on its balance sheet:
Cash $ 27,000,000
Common stock ($60 par; 1,600,000 shares outstanding)96,000,000
Additional paid in capital 11,200,000
Retained earnings 58,000,000
How would each of these accounts appear after a 6 percent stock dividend (fair market value is $120 per share)? Use the original balance sheet from the problem statement. Round the number of shares outstanding to the nearest whole number and the other answers to the nearest dollar.
find what the cash is
find the common stock price par and its shares outstanding
find the additional paid in capital
find the retained earning
Firm A had the following selected items on its balance sheet:
Cash $ 27,000,000
Common stock ($60 par; 1,600,000 shares outstanding)96,000,000
Additional paid in capital 11,200,000
Retained earnings 58,000,000
How would each of these accounts appear after: a one-for-two reverse split? Use the original balance sheet from the problem statement. Round the number of shares outstanding to the nearest whole number and the other answers to the nearest dollar.
find what the cash is
find the common stock price par and its shares outstanding
find the additional paid in capital
find the retained earning

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CFP Board Financial Planning Competency Handbook

Authors: CFP Board

2nd Edition

1119094968, 978-1119094968

More Books

Students explore these related Finance questions

Question

Assess three steps in the selection process.

Answered: 3 weeks ago

Question

Identify the steps in job analysis.

Answered: 3 weeks ago