Question 25 The stockholders' equity of Easter, Inc. at December 31, 20X8, appears below: Common stock, $25 par value, 200,000 shares authorized, 135,000 shares issued and outstanding 3,375,000 Paid-in capital in excess of par value 1,950,000 Retained earnings 2,575,000 During 20X9, the following transactions occurred: May 10: Declared a 10% common stock dividend when market value was $60 per share August 31: Issued the stock dividend declared on June 15. December 10: Declared a cash dividend of $3.50 per share to be paid in January 20Y0. December 31: Recognized net income of $ 1,680,500. Compute the year-end balance of the retained earnings for 20X9. Question 26 When forecasting the balance sheet, what happens when the initial balance sheet yields estimated total assets greater than the sum of total liabilities and equity? A The company will need additional financing from external sources B. The company will not be able to pay for expenses in the future C. The company projected a loss D. The company has negative stockholders' equity CE None of the above