Exercise 11-7 Your answer is partially correct. Try again. On October 31, the stockholders' equity section of Sheridan Company's balance sheet consists of common stock $582,000 and retained earnings $407,000. Sheridan is considering the following two courses of action: (1) Declaring a 6% stock dividend on the 97,000 $6 par value shares outstanding (2) Effecting a 2-for-1 stock split that will reduce par value to $3 per share. The current market price is $18 per share Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares. Sheridan Company's Balance Sheet Before Action After Stock Dividend After Stock Split Stockholders' equity Paid-in capital 582000 582000 582000 Retained earnings 407000 407000 407000 Total stockholders' equity Outstanding shares 97000 97000 194000