Squash Delight Inc. has the following balance sheet:

Assets
Cash	$	35,000
Accounts receivable		267,000
Fixed assets		796,000
Total assets	$	1,098,000
Liabilities
Accounts payable	$	344,000
Notes payable		52,000
Common stock (100,000 shares @ $2 par)		200,000
Capital in excess of par		100,000
Retained earnings		402,000
Total liabilities & owners' equity	$	1,098,000

The firms stock sells for $11 a share. 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.)

b. Show the effect on the capital accounts of a 10 percent stock dividend. Part b is 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.)

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

	Stock dividend
	Stock split

Squast Delight Inc. has the folowing balance sheet Assers Cash Accounts raceivable Fixed assets $ 35,000 267,000 96,000 Total assels S 1,098,000 Accounts payable Notes peyable Commen stock (100 cO0 shares 2 par) Capital in excess ct par Rctained carnings $ 34400 200,000 100,000 402,000 Total liabities& owners' equity $1.098,000 The fim's stock sels for $11 a share 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.) Ellect ol Stock Common stock Captal excess of p8r Retained aaming Tulal equity b. Show the elfect on the capital accounts of a 10 percent stock dividend Part b is separate from part a In part b do not assume the slock split has taken place (Do not round intermediate calculations and round your answers to the nearest whole dollar.) Effect of Stock Dlvidend Camman stock Captal excess of par Retained eamings Total c. Based on the balance in relained earnings, which of the ta dividend pans is more restrictive on future cash dividends? O Stock dridend Stock split