FULL SCEN PRINTER VERSION 4 BACK NE Problem 14-1A The condensed balance sheet of Ivanhoe Corporation reports the following: IVANHOE CORPORATION Balance Sheet (partial) June 30, 2017 Total assets $12,840,000 Liabilities and shareholders' equity Total liabilities $3,586,000 Shareholders' equity Common shares, unlimited number authorized, 383,000 issued 2,298,000 Retained earnings 6,956,000 Total shareholders' equity 9,254,000 Total liabilities and shareholders' equity $12,840,000 The market price of the common shares is currently $36 per share. Ivanhoe wants to assess the impact of three possible alternatives on the corporation and its shareholders. The alternatives are: 1. Payment of a $1.33 per share cash dividend 2. Distribution of a 5% stock dividend 3. A 3-for-1 stock split For each alternative, determine the impact on (1) assets, (2) liabilities, (3) common shares, (4) retained earnings, (5) total shareholders' equity, and (6) the number of shares. Cash Dividend Stock Dividend 3-for-1 Stock Split (1) Assets Decreased : No Effect . $1 No Effect (2) Liabilities $ No Effect No Effect . No Effect (3) Common shares No Effect Increased No Effect (4) Retained earnings Decreased Decreased No Effect (5) Total shareholders' equity Decreased No Effect 4 No Effect D (6) Number of shares No Effect Increased Increased