P11-11 (Algo) Comparing Cash Dividends, Stock Dividends, and Stock Splits L811-4 Just prior to the end of the fiscal year, Biofuel Corporation reported the following information: Common stock (s0.10 par value) $ 72,000 Additional paid-in capital Retained earnings Treasury stock 2,020,000 920,000 Cash flows from financing activities 25,000 Required: Complete the table below for each of the three following independent cases: Note: Round "Par per share" answers to 2 decimal places. Case 1: The board of directors declared a cash dividend of $0.02 per share. Case 2: The board of directors declared and issued a 100 percent stock dividend when the stock was selling at $10 per share. Case 3: The board of directors announced a 2-for-1 stock split. The market price prior to the split was $22 per share. Before Arry Dividends Items After Cash Dividend After Stock After Stock Dividend Split Common stock account Par value per share Shares outstanding Additional paid in capital Retained earnings Total stockholders' equity Cash flows from financing activities $ $ $ $ $ $ 72,000 $ 0.1 S 720,000 2,020,000s 920,000 $ 3,012,000 25,000 72,000 $ 0.10 $ 720,000 2,020,000 $ 912,800 $ S 144,000 $ 0.10 S 1,440,000 2,020,000 $ S 3,012,000 $ 25,000 $ 72,000 0.05 1,440,000 2,020,000 920,000 3,012,000 25,000
P11-11 (Algo) Comparing Cash Dividends, Stock Dividends, and Stock Splits L811-4 Just prior to the end of the fiscal year, Biofuel Corporation reported the following information: Common stock (s0.10 par value) $ 72,000 Additional paid-in capital Retained earnings Treasury stock 2,020,000 920,000 Cash flows from financing activities 25,000 Required: Complete the table below for each of the three following independent cases: Note: Round "Par per share" answers to 2 decimal places. Case 1: The board of directors declared a cash dividend of $0.02 per share. Case 2: The board of directors declared and issued a 100 percent stock dividend when the stock was selling at $10 per share. Case 3: The board of directors announced a 2-for-1 stock split. The market price prior to the split was $22 per share. Before Arry Dividends Items After Cash Dividend After Stock After Stock Dividend Split Common stock account Par value per share Shares outstanding Additional paid in capital Retained earnings Total stockholders' equity Cash flows from financing activities $ $ $ $ $ $ 72,000 $ 0.1 S 720,000 2,020,000s 920,000 $ 3,012,000 25,000 72,000 $ 0.10 $ 720,000 2,020,000 $ 912,800 $ S 144,000 $ 0.10 S 1,440,000 2,020,000 $ S 3,012,000 $ 25,000 $ 72,000 0.05 1,440,000 2,020,000 920,000 3,012,000 25,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:P11-11 (Algo) Comparing Cash Dividends, Stock Dividends, and Stock Splits LO11-4, 11-6,11-9
Just prior to the end of the fiscal year, Biofuel Corporation reported the following information:
Common stock (s0.10 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:
Note: Round "Par per share" answers to 2 decimal places.
Common stock account
Par value per share
Shares outstanding
Additional paid-in capital
Retained earnings
Case 1: The board of directors declared a cash dividend of $0.02 per share.
Case 2: The board of directors declared and issued a 100 percent stock dividend when the stock was selling at $10 per share.
Case 3: The board of directors announced a 2-for-1 stock split. The market price prior to the split was $22 per share.
Items
After Stock After Stock
Dividend
Split
72,000
144,000 $
0.05
0.10 $
Total stockholders' equity
Cash flows from financing activities
Before Arry
Dividends
$
$
S
$
$ 72,000
2,020,000
920,000
$
$
0
25,000
72,000 $
0.1 S
3,012,000
25,000
After Cash
Dividend
72,000 $
0.10 $
720,000
720,000
2,020,000 $2,020,000 $
920,000 $
912,800
$
$
1,440,000
1,440,000
2,020,000 $2,020,000
S
3,012,000 $
25,000 $
920,000
3.012,000
25,000
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