On October 31, the stockholders' equity section of Sheridan Company consists of common stock $275,000 and retained earnings $885,000. Sheridan is considering the following two courses of action: (1) declaring a 4% stock dividend on the 27,500, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share. Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and par value per share. Before Action After Stock Dividend After Stock Split Stockholders' equity Paid-in capital Common stock 275000 $ 385000 275000 In excess of par 44000 Total paid-in capital 275000 429000 275000 885000 731000 885000 Retained earnings Total stockholders' equity $ 1160000 $ 1160000 1160000 Outstanding shares 27500 28600 55000 Par value per share $ 10 $ 10