Problem 10-07

What effect will a two-for-one stock split have on the following items found on a firm's financial statements?

Earnings per share $4.75. Round your answer to the nearest cent.

Initial amount	New amount	Effect
$4.75	$	-Select-increasedecreaseno changeItem 2

Total equity $12,000,000. Round your answer to the nearest dollar.

Initial amount	New amount	Effect
$12,000,000	$	-Select-increasedecreaseno changeItem 4

Long-term debt $4,400,000. Round your answer to the nearest dollar.

Initial amount	New amount	Effect
$4,400,000	$	-Select-increasedecreaseno changeItem 6

Additional paid-in capital $1,414,000. Round your answer to the nearest dollar.

Initial amount	New amount	Effect
$1,414,000	$	-Select-increasedecreaseno changeItem 8

Number of shares outstanding 800,000. Round your answer to the nearest whole number.

Initial amount	New amount	Effect
800,000		-Select-increasedecreaseno changeItem 10

Earnings $3,800,000. Round your answer to the nearest dollar.

Initial amount	New amount	Effect
$3,800,000	$	-Select-increasedecreaseno changeItem 12