Hot Water, Inc., manufactures a variety of dry cleaning equipment. Listed below are five events that occurred during the current year:
1. Declared a $5 per share cash dividend.
2. Paid the cash dividend.
3. Purchased 1,000 shares of treasury stock for $37 per share.
4. Reissued 600 shares of the treasury stock at a price of $36 per share.
5. Declared a 5 percent stock dividend.
a. Indicate the effects of each of these events on the financial measurements listed in the four column headings listed below. Use the following code letters: I for increase, D for decrease, and NE for no effect.

b. For each event, explain the reasoning behind your answers. Be prepared to explain this reasoning inclass.

  • CreatedApril 17, 2014
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