Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The owners' equity accounts for Southern Lights International are shown here: Common stock ($.60 par value) $ 45,000 Capital surplus 340,000 Retained earnings 748,120 Total

The owners' equity accounts for Southern Lights International are shown here:

Common stock ($.60 par value) $ 45,000
Capital surplus 340,000
Retained earnings 748,120
Total owners equity $ 1,133,120

a-1. If the company declares a five-for-one stock split, how many shares will be outstanding? (Do not round intermediate calculations.) New shares outstanding a-2. What is the new par value per share? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) New par value $ per share b-1. If the company declares a one-for-six reverse stock split, how many shares are outstanding now? (Do not round intermediate calculations.) New shares outstanding b-2. What is the new par value per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) New par value $ per share

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CIA Review Part 2 Internal Audit Practice For The New 3 Part Exam

Authors: Irvin N.Gleim

17th Edition

158194375X, 978-1581943757

More Books

Students also viewed these Accounting questions

Question

What is a sniffer?

Answered: 1 week ago