Problems: Set B Compare impact of cash dividend, wock dividend. and stock split (LOI) AP -IB The condensed balance sheet of Erickson Corporation of End Corporation reports the following ERICKSON CORPORATION Balance Sheet (partial) fanuary 31, 2017 Total assets Liabilities and shareholders' equity Liabilities Shareholders' equity $2,500.00 Common shares, unlimited number wuthorized. 500,000 issued $3,000,000 3.500.000 6.500m Retained earnings Total liabilities and shareholders' equiry The market price of the common shares is currently $30 per share. Erickson wants to assess the three possible alternatives on the corporation and its shareholders. The alternatives are: 1. Payment of a $1.50 per share cash dividend 2. Distribution of a 5 stock dividend 3. A 2.for. I wock split Instrutions (a) For each alternative, determine the impact on (1) assets. (2) liabilities, (3) common shares. (4) earnings. (5) total shareholders' equity, and (6) the number of shares. (b) Assume an Erickson shareholder currently owns 2,000 common shares at a cost of $50,000. What is the input of each alternative for the shareholder, assuming that the market price of the shares changes proportionat with the alternative? TAKING IT FURTHER What is the purpose of a reverse stock splitt When might a company take this active P14-28 On December 31, 2016, Asaad Corporation had the following shareholders' equity accounts cord and post transactions epare shareholders' equity ction. (LOI) AP ASAAD CORPORATION Balance Sheet(partial) December 31, 2016