Problem 18-8 Stock split and stock dividend [LO4]

Squash Delight Inc. has the following balance sheet:

Assets
Cash	$	70,000
Accounts receivable		257,000
Fixed assets		792,000
Total assets	$	1,119,000
Liabilities
Accounts payable	$	295,000
Notes payable		51,000
Common stock (80,000 shares @ $2 par)		160,000
Capital in excess of par		100,000
Retained earnings		513,000
Total liabilities & owners' equity	$	1,119,000

The firm