Question: Current Attempt in Progress Toy Co Inc. is considering one of the three following courses of action: (1) paying a $0.5 cash dividend, (2)

Current Attempt in Progress Toy Co Inc. is considering one of thethree following courses of action: (1) paying a $0.5 cash dividend, (2)

Current Attempt in Progress Toy Co Inc. is considering one of the three following courses of action: (1) paying a $0.5 cash dividend, (2) distributing a 4% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $14 per share. Help Toy Co make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Before Action After Cash Dividend $1,269,000 $ $232,000 $ $ Common shares 657,000 Retained earnings 380,000 Total shareholders' equity 1,037,000) Total liabilities and shareholders' equity $1,269,000 $ $ Number of common shares 100,000 After Stock Dividend $ $

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!