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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$60,000Accounts receivable 287,000Fixed assets 775,000Total assets$1,122,000LiabilitiesAccounts payable$275,000Notes payable 53,000Common stock (120,000 shares @ $2 par)240,000Capital in excess of par 100,000Retained earnings 454,000Total liabilities & owners' equity$1,122,000 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? multiple choiceStock dividendStock split

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