Squash Delight Inc. has the following balance sheet:

Assets
Cash	$	95,000
Accounts receivable		445,000
Fixed assets		900,000
Total assets	$	1,440,000
Liabilities
Accounts payable	$	340,000
Notes payable		54,000
Common stock (100,000 shares @ $2 par)		200,000
Capital in excess of par		100,000
Retained earnings		746,000
Total liabilities & owners' equity	$	1,440,000

The firms stock sells for $12 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?

	a.Stock dividend
	b.Stock split

Squash Delight Inc. has the following balance sheet Assets Cash Accounts receivable Fixed assets S 95,000 445,000 900,000 Total assets S 1.440,000 Accounts payable Notes payable Common stock (100,000 shares$2 par) Capital in excess of par Retained eamings S 340,000 54,000 200,000 100,000 746.000 Total liabilities& owners' equity 1440,000 The firm's stock sells for $12 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.) Effect of Stock Split Common stock Capital excess of par Retained earmings Total equity b. Show the effect on the capital accounts of a 10 percant 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.) Effect of Stock Common stock Capital excess of par Retained eamings Total equity c. Based on the balance in retained earnings, which of the two dividend plans is more restrictive on future cash dividends? Stock dividend Stock spit