Problem 10-06

A firm's balance sheet has the following entries:

Cash	$	10,000,000
Total liabilities		29,000,000
Common stock ($4 par; 1,100,000 shares outstanding)		4,400,000
Additional paid-in capital		1,650,000
Retained earnings		44,000,000

What will be each of these balance sheet entries after:

a) a two-for-one stock split? Round the par value to the nearest cent, the number of shares outstanding to the nearest whole number, and the other answers to the nearest dollar.

Cash		$ ________
Total liabilities		$ ________
Common stock ($________ par; ________ shares outstanding)		$ ________
Additional paid-in capital		$ ________
Retained earnings		$ ________

b) a $1.75 per share cash dividend? Use the original balance sheet from the problem statement. Round the par value to the nearest cent, the number of shares outstanding to the nearest whole number, and the other answers to the nearest dollar.

Cash		$ ________
Total liabilities		$ ________
Common stock ($________ par; ________ shares outstanding)		$ ________
Additional paid-in capital		$ ________
Retained earnings		$ ________

c) a 10 percent stock dividend (current price of the stock is $13 per share)? Use the original balance sheet from the problem statement. Round the par value to the nearest cent, the number of shares outstanding to the nearest whole number, and the other answers to the nearest dollar.

Cash		$________
Total liabilities		$________
Common stock ($________ par; ________ shares outstanding)		$________
Additional paid-in capital		$________
Retained earnings		$________