Squash Delight Inc. has the following balance sheet: Cash Accounts receivable Fixed assets Total assets Assets Liabilities Accounts payable Notes payable Common stock (90,000 shares @ $4 par) Capital in excess of par Retained earnings Total liabilities & owners' equity The firm's stock sells for $9 a share. Common stock Capital excess of par Retained earnings Total equity Effect of Stock Split $ $ 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.) 0 75,000 289,000 815,000 $1,179,000 306,000 56,000 360,000 50,000 407,000 $1,179,000 $

Squash Delight Inc. has the following balance sheet: The firm's stock sells for $9 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