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Before Dividend After Dividend Before Dividend After Dividend Outstanding shares

ID: 2532887 • Letter: B

Question

Before Dividend After Dividend Before Dividend After Dividend Outstanding shares Before Dividend After Dividend select an opening section name Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' EquityPaid-in CapitalTotal Paid-in Capital select an opening subsection name Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' EquityPaid-in CapitalTotal Paid-in Capital enter a balance sheet item $enter a dollar amount $enter a dollar amount enter a balance sheet item enter a dollar amount enter a dollar amount select a closing subsection name     Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Net Income / (Loss)    Property, Plant and Equipment    Stockholders' Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Total Stockholders' Equity    Paid-in Capital    Total Paid-in Capital     enter a subtotal of the two previous amounts enter a subtotal of the two previous amounts enter a balance sheet item enter a dollar amount enter a dollar amount select a closing section name     Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Net Income / (Loss)    Property, Plant and Equipment    Stockholders' Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Total Stockholders' Equity    Paid-in Capital    Total Paid-in Capital     $enter a total amount for this section $enter a total amount for this section

Explanation / Answer

(a) Show the before-and-after effects of the dividend on the components of stockholders’ equity.

Before Dividend

After Dividend

Select an opening Section

Stockholder's Equity

Select an Opening Sub-Section

Equity Paid in capital

Equity Paid in capital- Excess Of Par

Retained Earnings

Stockholder's Equity

Before Dividend

After Dividend

Equity Paid in capital @ $8 Par

$1,016,000

$1,168,400

Equity Paid in capital- Excess Of Par

$190,500

Total Paid in Captal

$1,016,000

$1,358,900

Retained Earnings

$450,000

$107,100

Total Stockholder's Equity

$1,466,000

$1,466,000

Note:

($10 16 000 *115%=$1168400)

   19050 *10=190500(Excess=Market Value-Par Value) ($10=$18-$8)

(19050*$18=342900) ($ 450000-$342900=$107100)

(b) Show the before-and-after effects of the dividend on the shares outstanding

Before Dividend

After Dividend

Outstanding shares

127000

146050

Note:

Before Dividend = (1016000/$8=127000)

After Dividend= (1168400/$8=146050)

Before Dividend

After Dividend

Select an opening Section

Stockholder's Equity

Select an Opening Sub-Section

Equity Paid in capital

Equity Paid in capital- Excess Of Par

Retained Earnings

Stockholder's Equity

Before Dividend

After Dividend

Equity Paid in capital @ $8 Par

$1,016,000

$1,168,400

Equity Paid in capital- Excess Of Par

$190,500

Total Paid in Captal

$1,016,000

$1,358,900

Retained Earnings

$450,000

$107,100

Total Stockholder's Equity

$1,466,000

$1,466,000

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