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Sweetwater Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 6% stock dividend, or

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Sweetwater Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 6% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. Help Sweetwater make its decision by completing the following chart (treat each possibility independently): Before Action After Cash Dividend After Stock Dividend After Stock Split Total assets $1,153,000 $ $ Total liabilities $253,000 $ $ Shareholders' equity Common shares 633,000 Retained earnings 267,000 Total shareholders' equity 900,000 Total liabilities and shareholders' equity $1,153,000 $ $ Number of common shares 100,000

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