Question 8 Your answer is partially correct. A current liability is a debt that can be expected to be paid within| year(s) or the operating cycle whichever is longer. eTextbook and Media On October 31, the stockholders equity section of Sunland Company's balance sheet consists of common stock $ 696,000 and retained earnings $ 397,000. Sunland is considering the following two courses of action (1) (2) Declaring a 5% stock dividend on the 87,000 $ 8 par value shares outstanding Effecting a 2-for-1 stock split that will reduce par value to $ 4 per share The current market price is $15 per share Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares. Sunland Company's Balance Sheet Before Action After Stock Dividend After Stock Split Stockholders' equity Paid-in capital 730800$ 696000 397,000 1093000 $ 696000 Retained earnings 661200 397,000. Total stockholders' equity $ 1093000 $ 1093000 Outstanding shares 87000 91350 178350 Blossom Company provides you with the following balance sheet information as of December 31,2017, Current assets 10,500 Current liabilities Long-term assets 24,500 Long-term liabilities Total assets 35,000 Stockholders' equity 11,500 11,500 12,000 $35,000 Total liabilities and stockholders' equity n addition, Blossom reported net income for 2017 of $14,000, income tax expense of $ 2,800, and interest expense of $ 1,100 Compute the current ratio and working capital for Blossom for 2017. (Round current ratio to 2 decimal places, e.g. 2.75 Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g.(45)) Current ratio 91 :1 Working capital -1000 Assume that at the end of 2017, Blossom used $2,500 cash to pay off $ 2,500 of accounts payable. How would the new ratios be? (Round current ratio to 2 decimal places, e.g. 2.75. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45)) Current ratio 89 :1 Working capital -1000 eTextbook and Media Compute the debt to assets ratio and the times interest earned for Blossom for 2017. (Round answers to 2 decimal places, eg. 2.75) Debt to assets ratio Times interest earned ratio times