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Just prior to the end of the fiscal year, Climate Corporation reported the following information: $ 124,000 822,000 682,000 Common stock ($0.20 par value) Additional paid-in capital Retained earnings Treasury stock Cash flows from financing activities Required: Complete the table below for each of the three following independent cases: Items Case 1: The board of directors declared a cash dividend of $0.04 per share. Case 2: The board of directors declared and issued a 100 percent stock dividend when the stock was selling at $15 per share. Case 3: The board of directors announced a 2-for-1 stock split. The market price prior to the split was $16 per share. Note: Round "Par value per share" to 2 decimal places. Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity Cash flows from financing activities Before Any Dividends $ $ $ $ $ 124,000 0.20 0 822,000 682,000 35,000 35,000 After Cash Dividend After Stock Dividend After Stock Split

Just prior to the end of the fiscal year, Climate Corporation reported the following information: $ 124,000 822,000 682,000 Common stock ($0.20 par value) Additional paid-in capital Retained earnings Treasury stock Cash flows from financing activities Required: Complete the table below for each of the three following independent cases: Items Case 1: The board of directors declared a cash dividend of $0.04 per share. Case 2: The board of directors declared and issued a 100 percent stock dividend when the stock was selling at $15 per share. Case 3: The board of directors announced a 2-for-1 stock split. The market price prior to the split was $16 per share. Note: Round "Par value per share" to 2 decimal places. Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity Cash flows from financing activities Before Any Dividends $ $ $ $ $ 124,000 0.20 0 822,000 682,000 35,000 35,000 After Cash Dividend After Stock Dividend After Stock Split

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Climate Corporation Financial Summary and Case Analysis** Just prior to the end of the fiscal year, Climate Corporation reported the following information: - **Common stock ($0.20 par value):** $124,000 - **Additional paid-in capital:** $822,000 - **Retained earnings:** $682,000 - **Treasury stock:** $0 - **Cash flows from financing activities:** $35,000 **Required:** Complete the table below for each of the three following independent cases: - **Case 1:** The board of directors declared a cash dividend of $0.04 per share. - **Case 2:** The board of directors declared and issued a 100 percent stock dividend when the stock was selling at $15 per share. - **Case 3:** The board of directors announced a 2-for-1 stock split. The market price prior to the split was $16 per share. **Note:** Round "Par value per share" to 2 decimal places. | Items | Before Any Dividends | After Cash Dividend | After Stock Dividend | After Stock Split | |-----------------------------------|----------------------|---------------------|----------------------|-------------------| | Common stock account | $124,000 | | | | | Par value per share | $0.20 | | | | | Shares outstanding | | | | | | Additional paid-in capital | $822,000 | | | | | Retained earnings | $682,000 | | | | | Total stockholders' equity | | | | | | Cash flows from financing activities | $35,000 | | | | This table serves to show how different corporate actions such as cash dividends, stock dividends, and stock splits affect the financial metrics of Climate Corporation.
Transcribed Image Text:**Climate Corporation Financial Summary and Case Analysis** Just prior to the end of the fiscal year, Climate Corporation reported the following information: - **Common stock ($0.20 par value):** $124,000 - **Additional paid-in capital:** $822,000 - **Retained earnings:** $682,000 - **Treasury stock:** $0 - **Cash flows from financing activities:** $35,000 **Required:** Complete the table below for each of the three following independent cases: - **Case 1:** The board of directors declared a cash dividend of $0.04 per share. - **Case 2:** The board of directors declared and issued a 100 percent stock dividend when the stock was selling at $15 per share. - **Case 3:** The board of directors announced a 2-for-1 stock split. The market price prior to the split was $16 per share. **Note:** Round "Par value per share" to 2 decimal places. | Items | Before Any Dividends | After Cash Dividend | After Stock Dividend | After Stock Split | |-----------------------------------|----------------------|---------------------|----------------------|-------------------| | Common stock account | $124,000 | | | | | Par value per share | $0.20 | | | | | Shares outstanding | | | | | | Additional paid-in capital | $822,000 | | | | | Retained earnings | $682,000 | | | | | Total stockholders' equity | | | | | | Cash flows from financing activities | $35,000 | | | | This table serves to show how different corporate actions such as cash dividends, stock dividends, and stock splits affect the financial metrics of Climate Corporation.
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