Firm A had the following selected items on its balance sheet: Cash $ 32,000,000 Common stock ($60 par; 2,400,000 shares outstanding) 144,000,000 Additional...

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Finance

Firm A had thefollowing selected items on its balance sheet:

Cash$32,000,000
Common stock ($60 par; 2,400,000shares outstanding)144,000,000
Additional paid-in capital14,400,000
Retained earnings68,000,000

How would each ofthese accounts appear after:

  1. a cash dividend of $2per share? Round the number of shares outstanding to the nearestwhole number and the other answers to the nearest dollar.

    Cash$  
    Common stock ($   par;shares outstanding)$  
    Additional paid-in capital$  
    Retained earnings$  

  2. a 7 percent stockdividend (fair market value is $120 per share)? Use the originalbalance sheet from the problem statement. Round the number ofshares outstanding to the nearest whole number and the otheranswers to the nearest dollar.

    Cash$  
    Common stock ($   par;shares outstanding)$  
    Additional paid-in capital$  
    Retained earnings$  

  3. a one-for-threereverse split? Use the original balance sheet from the problemstatement. Round the number of shares outstanding to the nearestwhole number and the other answers to the nearest dollar.

    Cash$  
    Common stock ($   par;shares outstanding)$  
    Additional paid-in capital$  
    Retained earnings$  

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Firm A had thefollowing selected items on its balance sheet:Cash$32,000,000Common stock ($60 par; 2,400,000shares outstanding)144,000,000Additional paid-in capital14,400,000Retained earnings68,000,000How would each ofthese accounts appear after:a cash dividend of $2per share? Round the number of shares outstanding to the nearestwhole number and the other answers to the nearest dollar.Cash$  Common stock ($   par;shares outstanding)$  Additional paid-in capital$  Retained earnings$  a 7 percent stockdividend (fair market value is $120 per share)? Use the originalbalance sheet from the problem statement. Round the number ofshares outstanding to the nearest whole number and the otheranswers to the nearest dollar.Cash$  Common stock ($   par;shares outstanding)$  Additional paid-in capital$  Retained earnings$  a one-for-threereverse split? Use the original balance sheet from the problemstatement. Round the number of shares outstanding to the nearestwhole number and the other answers to the nearest dollar.Cash$  Common stock ($   par;shares outstanding)$  Additional paid-in capital$  Retained earnings$  

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