Squash Delight Inc. has the following balance sheet:

Assets

Cash	$100,000
Accounts receivable	$300,000
Fixed assets	$600,000
Total assets	$1,000,000

Liabilities

	Accounts payable	$150,000
	Notes Payable	$50,000
Capital Account	Common stock (50,000 shares @ $2 par)	$100,000
Capital Account	Capital in excess of par	$200,000
Capital Account	Retained earnings	$500,000

The firm's stock sells for $10 a share.

a. Show the effect on the capital account(s) of a two-for-one stock split.

b. Show the effect on the capital accounts of a 10% stock dividend. Part b is seperate from part a. In part b, do not assume the stock split has taken place.

c. Based on the balance in retained earnings, which of the two dividend plans is more restrictive on future cash dividends?