spreadsheet excercise on excel
Calculate the effect on the par value and number of shares after the reverse plit. AAB 1 Spreadsheet Exercise: Chapter 14 One way to lower the market price of a firm's stock is via a stock split. Rock-O Corporation finds itself in a different situation: Its stock has been selling at relatively low prices. To increase the market price of the stock, the company chooses to use a reverse stock split of 2-for-3. The company currently has 700,000 common shares outstanding and no preferred stock. The common stock carries a par value of Sl. At this time, the paid-in capital in excess of par is $7,000,000, and the firm's retained earnings are $3,500,000 To Do Create a spreadsheet to determine the following: a. The stockholders' equity section of the balance sheet before the reverse stock split. b. Calculate the effect on the par value and number of shares after the reverse plit. Solution No. of common shares outstanding Par value of each share Paid-in capital in excess of par Retained earnings of the firm Reverse stock split Chapter 14 $. S S 700,000 1.00 7,000,000 3,500,000 for $ 3.00 alculate the effect on the par value and number of shares after the reverse plit. AB a. The stockholders' equity section of the balance sheet before the reverse stock split. Par value of common stock Paid-in capital in excess of par Retained earnings Common stock $ $ 7,000,000 3,500,000 b. Calculate the effect on the par value and number of shares after the reverse plit. NOU Number of common shares after reverse split Par value of each share after reverse split The stockholders' equity section of the balance sheet after the reverse stock split. Par value of common stock Paid-in capital in excess of par $ 7,000,000 Retained earnings $ 3,500,000 Common stock 36 Requirements 1 In cell F20. by using cell references to the given data, calculate the par value of common stoc Par value of common stock Paid-in capital in excess of par Retained earnings Common stock $ $ 7,000,000 3,500,000 Points 1 1 quirements 1 In cell F20, by using cell references to the given data, calculate the par value of common stock before the reverse split 2 In cell F23, by using cell references to the given data, calculate the value of common stock before the reverse split. 3 In cell F27, by using cell references to the given data, calculate the number of common shares after reverse split. 4 In cell F28, by using cell references to the given data, calculate the par value of each share after reverse split. 5 In cell F30, by using cell references to the new par values and number of shares post-split, calculate the par value of common stock after the reverse split. 6 In cell F33, by using cell references to the given data, calculate the value of common stock after the reverse split 7 Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed. Chapter 14 - FILE HOME INSERT PAGE LAYOUT X Cut Times New Ro 14 Copy Format Painter BTU Paste Milos Zutter Chapter 14 Start Read-Onlyl - Excel FORMULAS DATA REVIEW VIEW AA== Wrap Test Number Morge & Center - $ -% 8.. Conditional Formatas Call Formatting Table Styles Alignment calculate the effect on the par value and number of shares after the reverse plit. A A utoSum - EX Insert Delete Format Clear X fi A Editing Spreadsheet Exercise: Chapter 14 One way to lower the market price of a firm's stock is via a stock split. Rock-O Corporation finds itself in a different situation: Its stock has been selling at relatively low prices. To increase the market price of the stock, the company chooses to use a reverse stock split of 2-for-3. The company currently has 700,000 common shares outstanding and no preferred stock. The common stock carries a par value of Sl. At this time, the paid-in capital in excess of par is $7,000,000, and the firm's retained earnings are $3,500,000 To Do Create a spreadsheet to determine the following: a. The stockholders' equity section of the balance sheet before the reverse stock split b. Calculate the effect on the par value and number of shares after the reverse plit. Solution No. of common shares outstanding Par value of each share Paid in capital in excess of par Chapter 14 700,000 1.00 7,000,000 14 $ Type here to search ofte 9 Copy Paste Merge & Center - $ % 48.00 Conditional Format as Cell Formatting Table Styles Styles Font Alignment Number * Format Painter te BIU. . . A Clipboard X ft Paid-in capital in excess of par . Paid-in capital in excess of par Retained earnings of the firm Reverse stock split $ S 7,000,000 3,500,000 for 3.00 a. The stockholders' equity section of the balance sheet before the reverse stock split. Par value of common stock Paid-in capital in excess of par Retained earnings Common stock S $ 7,000,000 3,500,000 b. Calculate the effect on the par value and number of shares after the reverse plit. Number of common shares after reverse split Par value of each share after reverse split The stockholders' equity section of the balance sheet after the reverse stock split. Par value of common stock Paid-in capita in excess of par $ 7,000,000 2 En non Chapter 14 Dri READY Type here to search | x WLETT PACKARD J! In cell 33, by using cell references to the given data, calculate the value of common stock after the reverse split. Paid-in capital in excess of par Retained earnings Common stock 7,000,000 3,500,000 $ Points 36 Requirements 1 In cell F20, by using cell references to the given data, calculate the par value of common stock before the reverse split. 2 In cell F23, by using cell references to the given data, calculate the value of common stock before the reverse split 3 In cell F27, by using cell references to the given data, calculate the number of common shares after reverse split 4 In cell F28, by using cell references to the given data, calculate the par value of each share after reverse split. 5 In cell F30, by using cell references to the new par values and number of shares post-split, calculate the par value of common stock after the reverse split. 6 In cell F33, by using cell references to the given data, calculate the value of common stock after the reverse split. C hanthabhi Lal Chit the landi Chapter 14 te Number Times New Ro - 14 Copy AA == > Wrap Text General Format Painter BIU. . .A Merge & Center - $ - % , *8.00 Conditional Format as Cell Clipboard Font Formatting Table Styles - Alignment Styles 51 . fr LAB 3 In cell F27, by using cell references to the given data, calculate the number of common shares after revers split 4 In cell F28, by using cell references to the given data, calculate the par value of each share after reverse sp 5 In cell F30, by using cell references to the new par values and number of shares post-split, calculate the par value of common stock after the reverse split. 6 In cell F33, by using cell references to the given data, calculate the value of common stock after the reverse split. 7 Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed. 152 Chapter 14 PARADY En O e Type here to search RL 9
