The McLaughlin Corporation declared a 6 percent stock dividend. Construct a pro forma balance sheet showing the

Question:

The McLaughlin declared a 6 percent stock dividend. Construct a pro forma showing the effect of this action. The stock was selling for $37.50 per share, and a condensed version of McLaughlin€™s as of December 31, 2008, before the dividend, follows ($ millions):

Debt Common stock (75 million shares outstanding, $1 par) $ 112.5 2,887.5 $1,500.0 75.0 Cash Other assets Paid-in capita

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...