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The question: Thank you for your help! Practice Do It! Review 02 a-b (Part Level Submission) Whispering Winds Corp. has had 4 years of net
The question:
Thank you for your help!
Practice Do It! Review 02 a-b (Part Level Submission) Whispering Winds Corp. has had 4 years of net income. Due to this success, the market price of its 440,000 shares of $6 par value common stock has increased from $12 per share to $53. During this period, paid-in capital remained the same at $4,500,000. Retained earnings increased from $1,870,0000 to $12,700,000. President E. Rife is considering either a 17% stock dividend or a 2-for-1 stock split. (a) Your answer is correct. He asks you to show the before-and-after effects of each option on retained earnings. Retained earnings after stock dividend 8735600 12700000 Retained earnings after stock split (b) He asks you to show the before-and-after effects of each option on total stockholders' equity. Total stockholders' equity after stock dividend Total stockholders' equity after stock splitStep by Step Solution
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