Problem 10-08 A firm has the following balance sheet: Assets Liabilities and Equity Cash $ 10,000 Accounts payable $ 10,000 Accounts receivable 158,000 Long-term debt 116,000 Inventory 72,500 Common stock (S7 par; 31,500 4,500 shares outstanding) Plant and equipment 210,000 Additional pald-in capital 145,000 Retained earnings 148,000 $450,500 $450,500 a. Construct a new balance sheet showing the impact of a four-for-one spit. If the current market price of the stock is $58, what is the price after the spille? Round the par value and the market price after the split to the nearest cent, the number of shares outstanding to the nearest whole number, and the other answers to the nearest dollar Assets Liabilities and Equity Cash $ 10000 Account payable 10000 Accounts receivable $ 158000 Long-term debt $ 116000 Inventory $ 72500 Common stock $ 31500 (5 1.75 par; 18000 shares outstanding) Plant and equipment 210000 Additional paid in capital $ 145000 Retained earnings $ 148000 450500 5 450500 Price of the common stock after the split: $ 14.5 b. Construct a new balance sheet showing the impact of a 15 percent stock dividend. After the stock dividend, what is the new price of the common stock? Use the original balance sheet from the problem statement. Round the par value and the market price after the stock dividend to the nearest at the man har Plant and equipment 18000 shares outstanding) Additional paid-in capital Retained earnings 210000 $ $ $ 145000 148000 450500 450500 Price of the common stock after the split: $ 14.5 b. Construct a new balance sheet showing the impact of a 15 percent stock dividend. After the stock dividend, what is the new price of the common stock? Use the original balance sheet from the problem statement. Round the par value and the market price after the stock dividend to the nearest cent, the number of shares outstanding to the nearest whole number, and the other answers to the nearest dollar. Assets Liabilities and Equity Cash $ 10000 Accounts payable 10000 Accounts receivable $ 158000 Long-term debt $ 116000 Inventory $ 72500 Common stock $ ($ par; shares outstanding) Plant and equipment 210000 Additional pald-in capital $ Retained earnings $ $ 450500 $ 450500 Price of the common stock after the stock dividend: $ 50.43 Grade it Now Save & Continue Continue without saving