1. Analyze the effects of alternative distributions on stockholders' equity. Cash dividends, stock dividends, and stock splits - Excel FILE Sign In HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri 11 A A % Alignment Number Conditional Format as Cell Formatting Table Styles Cells Editing Paste BIU Clipboard Font Styles A1 fe At December 31, Artists Unlimited Company had the following B D E At December 31, Artists Unlimited Company had the following 2 stockholder's equity components that would be part of the balance sheet: 100% 2 $5,000 Stock for 1 Stock Cash 5 Stockholders' Equity 6 Contributed Capital: 7 Number of common shares outstanding 8 Par value per common share 9 Common Stock, at par 10 Additional Paid in Capital 11 At Dec 31 Dividend Split Dividend 5,000 24 1.00 5,000 745,000 Total Contributed Capital 12 Retained Earnings 13 750,000 980,000 Total Stockholders' Equity 14 15 16 Required: 1,730,000 17 The company is considering 3 alternative distributions to stockholders. Consider each alternative independently of the others. 18 Complete the table above and show the resulting balances on the stockholders' equity section as a result of these distributions. 19 Use only cell references in formulas. Use cells C3, D3, and E3 as appropriate. Do not reference cells from one alternative in another alternative. 20 123 4

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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1. Analyze the effects of alternative distributions on stockholders' equity.
Cash dividends, stock dividends, and stock splits - Excel
Sign In
FILE
HOME
INSERT
PAGE LAYOUT
FORMULAS
DATA
REVIEW
VIEW
Calibri
A A
11
%
Alignment Number Conditional Format as Cell
Formatting Table Styles
Paste
в I U
Cells
Editing
Clipboard a
Font
Styles
A1
fe
At December 31, Artists Unlimited Company had the following
A
B
D
E
1 At December 31, Artists Unlimited Company had the following
2 stockholder's equity components that would be part of the balance sheet:
3
100%
2
$5,000
4
Stock
for 1 Stock
Cash
5 Stockholders' Equity
6 Contributed Capital:
7 Number of common shares outstanding
8 Par value per common share
9 Common Stock, at par
At Dec 31
Dividend
Split
Dividend
5,000
1.00
5,000
10
Additional Paid in Capital
745,000
11
Total Contributed Capital
750,000
12 Retained Earnings
980,000
Total Stockholders' Equity
13
1,730,000
14
15
16 Required:
17 The company is considering 3 alternative distributions to stockholders. Consider each alternative independently of the
others.
18 Complete the table above and show the resulting balances on the stockholders' equity section as a result of these
distributions.
19 Use only cell references in formulas. Use cells C3, D3, and E3 as appropriate. Do not reference cells from one
alternative in another alternative.
20
04.
Sheet1
>
%24
Transcribed Image Text:1. Analyze the effects of alternative distributions on stockholders' equity. Cash dividends, stock dividends, and stock splits - Excel Sign In FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri A A 11 % Alignment Number Conditional Format as Cell Formatting Table Styles Paste в I U Cells Editing Clipboard a Font Styles A1 fe At December 31, Artists Unlimited Company had the following A B D E 1 At December 31, Artists Unlimited Company had the following 2 stockholder's equity components that would be part of the balance sheet: 3 100% 2 $5,000 4 Stock for 1 Stock Cash 5 Stockholders' Equity 6 Contributed Capital: 7 Number of common shares outstanding 8 Par value per common share 9 Common Stock, at par At Dec 31 Dividend Split Dividend 5,000 1.00 5,000 10 Additional Paid in Capital 745,000 11 Total Contributed Capital 750,000 12 Retained Earnings 980,000 Total Stockholders' Equity 13 1,730,000 14 15 16 Required: 17 The company is considering 3 alternative distributions to stockholders. Consider each alternative independently of the others. 18 Complete the table above and show the resulting balances on the stockholders' equity section as a result of these distributions. 19 Use only cell references in formulas. Use cells C3, D3, and E3 as appropriate. Do not reference cells from one alternative in another alternative. 20 04. Sheet1 > %24
7 Number of common shares outstanding
8 Par value per common share
9 Common Stock, at par
10 Additional Paid in Capital
5,000
1.00
5,000
745,000
11
Total Contributed Capital
12 Retained Earnings
Total Stockholders' Equity
750,000
980,000
13
2$
1,730,000
14
15
16 Required:
17 The company is considering 3 alternative distributions to stockholders. Consider each alternative independently of the
others.
18 Complete the table above and show the resulting balances on the stockholders' equity section as a result of these
distributions.
19 Use only cell references in formulas. Use cells C3, D3, and E3 as appropriate. Do not reference cells from one
alternative in another alternative.
20
21 1) Issue a 100% stock dividend.
22 OR
23 2) Execute a 2-for-1 stock split.
24 OR
25 3) Distribute a $5,000 cash dividend.
26
Sheet1
....
Transcribed Image Text:7 Number of common shares outstanding 8 Par value per common share 9 Common Stock, at par 10 Additional Paid in Capital 5,000 1.00 5,000 745,000 11 Total Contributed Capital 12 Retained Earnings Total Stockholders' Equity 750,000 980,000 13 2$ 1,730,000 14 15 16 Required: 17 The company is considering 3 alternative distributions to stockholders. Consider each alternative independently of the others. 18 Complete the table above and show the resulting balances on the stockholders' equity section as a result of these distributions. 19 Use only cell references in formulas. Use cells C3, D3, and E3 as appropriate. Do not reference cells from one alternative in another alternative. 20 21 1) Issue a 100% stock dividend. 22 OR 23 2) Execute a 2-for-1 stock split. 24 OR 25 3) Distribute a $5,000 cash dividend. 26 Sheet1 ....
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