Squash Delight Inc. has the following balance sheet: Assets Cash $ 90,000 Accounts receivable 339,000 Fixed assets 732,000 Total assets $ 1,161,000 Liabilities Accounts payable $ 302,000 Notes payable 52,000 Common stock (100,000 shares @ $2 par) 200,000 Capital in excess of par 100,000 Retained earnings 507,000 Total liabilities & owners' equity $ 1,161,000 The firms stock sells for $10 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?