Squash Delight Inc. has the following balance sheet: cash $45,00 Account receivable $295,000. fix assets 772,000. total $1,112...

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Finance

Squash Delight Inc. has the following balancesheet:
cash $45,00 Account receivable $295,000. fix assets 772,000. total$1,112 000
Liabilities
Account payable $296 000, Note payable 54 000, Common stock(100,000 share, @$2 par) 200 000. Capital in excess of par 100,000,Retained earnings 462 000. Total liabilities & owner's equity$1,112,000. The Firm's stock sells for $14 a share.
a. show the effect on the capital account of atwo-for-one stock split.
b. show the effect on the capital account of a 10percent stock dividend. Do not assume the stock split had takenplace. it is separate fro. part a.

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Squash Delight Inc. has the following balancesheet:cash $45,00 Account receivable $295,000. fix assets 772,000. total$1,112 000LiabilitiesAccount payable $296 000, Note payable 54 000, Common stock(100,000 share, @$2 par) 200 000. Capital in excess of par 100,000,Retained earnings 462 000. Total liabilities & owner's equity$1,112,000. The Firm's stock sells for $14 a share.a. show the effect on the capital account of atwo-for-one stock split.b. show the effect on the capital account of a 10percent stock dividend. Do not assume the stock split had takenplace. it is separate fro. part a.