Squash Delight Inc. has the following balance sheet: $ 80,000 302 000 728000 $1, 110,000...
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Squash Delight Inc. has the following balance sheet: $ 80,000 302 000 728000 $1, 110,000 ok Assets Cash Accounts receivable Fixed assets Total assets Liabilities Accounts payable Notes payable Common stock (100,000 shares @ $4 par) Capital in excess of par Retained earnings Total liabilities & owners' equity $ at 270 000 58 000 400 000 100.000 282000 int ences $1, 110 000 The firm's stock sells for $13 a share. The firm's stock sells for $13 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.) Effect of Stock Split Common stock Capital excess of par Retained earnings es Total equity $ 0 spilt nas taken place. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) Effect of Stock Dividend Common stock k Capital excess of par Retained earnings Total equity $ 0 1 at nces c. Based on the balance in retained earnings, which of the two dividend plans is more restrictive on future cash dividends? O Stock dividend Stock split
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