Tech Process, Inc., manufactures a variety of computer peripherals, such as tape drives and printers. Listed below are five events that occurred during the current year.

1. Declared a $1.00 per share cash dividend.

2. Paid the cash dividend.

3. Purchased 1,000 shares of treasury stock for $20.00 per share.

4. Reissued 500 shares of the treasury stock at a price of $18.00 per share.

5. Declared a 15 percent stock dividend.

Instructions

a. Indicate the effects of each of these events on the financial measurements listed in the four columnar 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.

Transcribed Image Text:

Current Assets Stockholders Equity Net Income Net Cash Flow (from any source) Event