Beca Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. Help Beca make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Number of common shares Before Action $1,354,000 $ $258,000 $ 657,000 439,000 1,096,000 $1,354,000 $ 100,000 (1) After Cash Dividend $ $ $ (2) After Stock Dividend $ $ $ (3) After Stock Split
Beca Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. Help Beca make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Number of common shares Before Action $1,354,000 $ $258,000 $ 657,000 439,000 1,096,000 $1,354,000 $ 100,000 (1) After Cash Dividend $ $ $ (2) After Stock Dividend $ $ $ (3) After Stock Split
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 4AP
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![Beca Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share.
Help Beca make its decision by completing the following chart (treat each possibility independently):
Total assets
Total liabilities
Shareholders' equity
Common shares
Retained earnings
Total shareholders' equity
Total liabilities and shareholders' equity
Number of common shares
Before Action
$1,354,000
$258,000 $
657,000
439,000
1,096,000
$1,354,000
$
100,000
$
(1)
After Cash
Dividend
$
$
$
(2)
After Stock
Dividend
$
$
$
(3)
After
Stock Split](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa331f5d3-d99c-40ee-9abe-64c3e0869912%2Fca70e02b-532d-43df-9775-5eba82e75503%2Fxgbsw2o_processed.png&w=3840&q=75)
Transcribed Image Text:Beca Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share.
Help Beca make its decision by completing the following chart (treat each possibility independently):
Total assets
Total liabilities
Shareholders' equity
Common shares
Retained earnings
Total shareholders' equity
Total liabilities and shareholders' equity
Number of common shares
Before Action
$1,354,000
$258,000 $
657,000
439,000
1,096,000
$1,354,000
$
100,000
$
(1)
After Cash
Dividend
$
$
$
(2)
After Stock
Dividend
$
$
$
(3)
After
Stock Split
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