Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

P14-1B The condensed balance sheet of Erickson Corporation reports the following: of cash vidend, 1) AP ERICKSON CORPORATION Balance Sheet (partial) January 31, 2017 $9,000.00

image text in transcribed
P14-1B The condensed balance sheet of Erickson Corporation reports the following: of cash vidend, 1) AP ERICKSON CORPORATION Balance Sheet (partial) January 31, 2017 $9,000.00 $2,500,00 Total assets Liabilities and shareholders' equity Liabilities Shareholders' equity Common shares, unlimited number authorized, 500,000 issued Retained earnings Total liabilities and shareholders' equity $3,000,000 3,500,000 1. Rea 2. Issu 3. Issu Instrud (a) Ca (b) De Re TAKIN to fulfi with sh P14-4 6,500.000 $9,000.00 The market price of the common shares is currently $30 per share. Erickson wants to assess the three possible alternatives on the corporation and its shareholders. The alternatives are: 1. Payment of a $1.50 per share cash dividend 2. Distribution of a 5% stock dividend 3. A 2-for-1 stock split Instructions The fol (a) For each alternative, determine the impact on (1) assets, (2) liabilities, (3) common carnings, (5) total shareholders' equity, and (6) the number of shares. (b) Assume an Erickson shareholder currently owns 2,000 common shares at a cost of $50 of cach alternative for the shareholder, assuming that the market price of the shares chan with the alternative? common shares (4 Jan. 1 Feb. 2 Apr. 1 June 2 Aug. 10 Oct. cost of $50,000. What is shares changes proprio TAKING IT FURTHER What is the purpose of a reverse stock split? When might -ansactions P14-2BOn December 31, 2016. Anda er equity Dec When might a company take tim

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

Step: 3

blur-text-image

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

Auditing Social Media A Governance And Risk Guide

Authors: Peter R. Scott, J. Mike Jacka

1st Edition

1118061756, 978-1118061756

More Books

Students also viewed these Accounting questions

Question

Comment should this MNE have a global LGBT policy? Why/ why not?

Answered: 1 week ago