2024 – 14 value 2 00 points Squash Delight Inc has the following balance sheet Assets
Finance Problem 14 – 2024
2.00 points
Squash Delight Inc. has the following balance sheet: |
Assets | ||
Cash | $ | 45,000 |
Accounts receivable | 295,000 | |
Fixed assets | 772,000 | |
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Total assets | $ | 1,112,000 |
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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 | |
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Total liabilities & owners’ equity | $ | 1,112,000 |
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The firm’s stock sells for $14 a share. |
a. |
Show 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 | $ [removed] | |
Capital excess of par | $ [removed] | |
Retained earnings | $ [removed] | |
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Total equity | $ [removed] | |
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b. |
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. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) |
Common stock | $ [removed] | |
Capital excess of par | $ [removed] | |
Retained earnings | $ [removed] | |
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Total equity | $ [removed] | |
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c. |
Based on the balance in retained earnings, which of the two dividend plans is more restrictive on future cash dividends? |
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