Squash Delight Inc. has the following balance sheet: 40,000 306,000 850,000 $1,196,000 Assets Cash Accounts receivable Fixed assets Total assets Liabilities Accounts payable Notes payable Common stock (100,000 shares @ $4 par Capital in excess of par Retained earnings Total liabilities & owners' equity 293,000 58,000 400,000 100,000 345,000 $1,196,000 The firm's stock sells for S12 a share. a. Show the effect on the capital accounts of a two-for-one stock split. (Do not round intern answers to the nearest whole dollar.) Effect of Stock Split common stock a. Show the effect on the capital accounts of a two-for-one stock split. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) Effect of Stock Split Common stock Capital excess of par Retained earnings Total equity b. Show the effect on the capital accounts of a 10 percent stock dividend. Part bis separate from part a. In part b. do not assume the stock split has taken place. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) Effect of Stock Dividend Common stock Capital excess of par Retained earnings Total equity tions and round your answers to the nearest whole dollar.) Effect of Stock Dividend Common stock Capital excess of par Retained earnings Total equity C. Based on the balance in retained earnings, which of the two dividend plans is more restrictive on future cash dividends? Stock split Stock dividend 805-242-7200 michelle austin Michelle.austin@brinksinc.com acer 574-1413