Question

Squash Delight Inc. has the following balance sheet:  style=”color:rgb(51,51,51);background-color:transparent;”>       Assets   Cash $ 45,000    Accounts receivable   295,000    Fixed assets   772,000         Total assets $ 1,112,000   
Liabilities   Accounts payable $ 296,000    Notes payable   54,000    Common stock (100,000 shares @ $2 par)   200,000    Capital in excess of par   100,000    Retained earnings   462,000         Total liabilities & owners’ equity $ 1,112,000      The firm’s stock sells for $14 a share. a. What is 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.) Common stock: _________ Capital Excess of par:___________ Retained Earnings:____________ Total equity:______________ b. What is 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.) Common stock: _________ Capital Excess of par:___________ Retained Earnings:____________ Total equity:______________

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"