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Squash Delight Inc. has the following balance sheet: AssetsCash$ 6 0 , 0 0 0 Accounts receivable 2 8 7 , 0 0 0 Fixed
Squash Delight Inc. has the following balance sheet: AssetsCash$Accounts receivable Fixed assets Total assets$LiabilitiesAccounts payable$Notes payable Common stock shares @ $ parCapital in excess of par Retained earnings Total liabilities & owners' equity$ The firms stock sells for $ a share. a Show the effect on the capital accounts of a twoforone 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 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? multiple choiceStock dividendStock split
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