Marigold Corp. has had 4 years of net income. Due to this success, the market price of its 310,000 shares of $6 par value common stock has increased from $14 per share to $53. During this period, paid-in capital remained the same at $4,320,000. Retained earnings increased from $1,740,000 to $11,600,000. President E. Rife is considering either a 16% stock dividend or a 2-for-1 stock split. He asks you to show the before-and-after effects of each option on retained earnings. $ Retained earnings after stock dividend $ Retained earnings after stock split He asks you to show the before-and-after effects of each option on total stockholders' equity. $ Total stockholders' equity after stock dividend $ Total stockholders' equity after stock split
Marigold Corp. has had 4 years of net income. Due to this success, the market price of its 310,000 shares of $6 par value common stock has increased from $14 per share to $53. During this period, paid-in capital remained the same at $4,320,000. Retained earnings increased from $1,740,000 to $11,600,000. President E. Rife is considering either a 16% stock dividend or a 2-for-1 stock split. He asks you to show the before-and-after effects of each option on retained earnings. $ Retained earnings after stock dividend $ Retained earnings after stock split He asks you to show the before-and-after effects of each option on total stockholders' equity. $ Total stockholders' equity after stock dividend $ Total stockholders' equity after stock split
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Marigold Corp. has had 4 years of net income. Due to this success, the market price of its 310,000 shares of $6 par value common stock has increased
from $14 per share to $53. During this period, paid-in capital remained the same at $4,320,000. Retained earnings increased from $1,740,000 to
$11,600,000. President E. Rife is considering either a 16% stock dividend or a 2-for-1 stock split.
He asks you to show the before-and-after effects of each option on retained earnings.
$
Retained earnings after stock dividend
$
Retained earnings after stock split
Transcribed Image Text:He asks you to show the before-and-after effects of each option on total stockholders' equity.
$
Total stockholders' equity after stock dividend
$
Total stockholders' equity after stock split
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