Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. squash delight incorporated has the following bala

Squash Delight Incorporated has the following balance sheet:AssetsCash$ 90,000Accounts receivable307,000Fixed assets782,000Total assets$ 1,179,000LiabilitiesAccounts payable$ 284,000Notes...

80.2K

Verified Solution

Question

Finance

Squash Delight Incorporated has the following balance sheet:

AssetsCash$ 90,000Accounts receivable307,000Fixed assets782,000Total assets$ 1,179,000LiabilitiesAccounts payable$ 284,000Notes payable51,000Common stock (100,000 shares @ $4 par)400,000Capital in excess of par100,000Retained earnings344,000Total liabilities & owners' equity$ 1,179,000

The firms stock sells for $10 a share.

  1. Show the effect on the capital accounts of a two-for-one stock split.

Note: Do not round intermediate calculations and round your answers to the nearest whole dollar.

2. Show 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.

Note: Do not round intermediate calculations and round your answers to the nearest whole dollar.

3. Based on the balance in retained earnings, which of the two dividend plans is more restrictive on future cash dividends?multiple choice

Stock dividend

Stock split

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students