Part A

1. On September 1st, the board of directors of Sparrow, Inc., declares and issues a stock dividend on its 10,000, $1 par, common shares. The market price of the common stock is $30 on this date.
2. 1. Record the stock dividend assuming a small (10%) stock dividend.
   2. Record the stock dividend assuming a large (100%) stock dividend.
   3. Record the transaction assuming a 2-for-1 stock split (hint: there may not be a journal entry to record).
3. On May 15th, Hawk Companys board declares a cash dividend of $0.15 per share payable on June 10th to all stockholders of record on May 31st.
4. 1. Record Hawks May 15th journal entry for the declaration of the cash dividends for its 300,000 outstanding shares of common stock.
   2. Record the June 10th payment date journal entry.

Part B

In Part B, you will utilize the knowledge about equity analysis that was covered on the M6: Insights 2Earned Capital, Reporting Equity, and Equity Analysis page.

The financial statements of Blue Jay Corporation include the following selected data:

($ in thousands, except stock price)	2031	2030
Sales	$728,121	$751,558
Net income	16,012	13,626
Dividends	4,087	3,885
Stockholders' equity, end of year	235,153	221,457
Shares outstanding	45,000	40,000
Average stock price	$ 5.40	$ 4.70

Calculate the following amounts for 2031 (round earnings per share to two decimal points; round all other ratios to one decimal point):

1. Return on equity.
2. Dividend yield.
3. Earnings per share.
4. Price-earnings ratio.