Dr. Eveal Industries has the following balance sheet (The firm has a market price of $22 a share): Dr. Eveal Industries

a. Show the effect on the capital account(s) of a two-for-one stock split.
b. Show the effect on the capital account of a 10 percent stock dividend. (Part b is separate from part a)
c. Based on the balance in retained earnings, which of the two dividend plans is more restrictive on future cashdividends?

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Dr. Eveal Industries Assets as Accounts receivable Fixed assets $110,000 $520,000 $1,370,000 $2,000,000 Total assets Liabilities and Stockholders Equity Accounts payable Notes payable $500,000 $100,000 $600,000 Total liabilities (Capital account Common stock 100,000 shares @ $4 par (Capital account) Capital in excess of par (Capital account Retained earnings $400,000 $200,000 $800,000 $1,400,000 $2,000,000 Total equity Total liabilities and stockholders equit