Peters and Associates is a small manufacturer of electronic connections for local area networks. Consider the three cases below as independent situations.
Case 1: Peters increases its cash dividend by 50 percent, but no other changes occur in the company’s operations.
Case 2: The company’s income and operating cash flows increase by 50 percent, but this does not change its dividends.
Case 3: Peters issues a 50 percent stock dividend, but no other changes occur.

Required:
1. How will each case affect Peters’s statement of cash flows?
2. How will each case affect Peters’s earnings per share ratio?