Problem 10-07

What effect will a four-for-one stock split have on the following items found on a firm's financial statements?

Earnings per share $5.00. Round your answer to the nearest cent.

Initial amount	New amount	Effect
$5.00	$	-Select-increasedecreaseno changeItem 2

Total equity $10,000,000. Round your answer to the nearest dollar.

Initial amount	New amount	Effect
$10,000,000	$	-Select-increasedecreaseno changeItem 4

Long-term debt $4,100,000. Round your answer to the nearest dollar.

Initial amount	New amount	Effect
$4,100,000	$	-Select-increasedecreaseno changeItem 6

Additional paid-in capital $1,431,000. Round your answer to the nearest dollar.

Initial amount	New amount	Effect
$1,431,000	$	-Select-increasedecreaseno changeItem 8

Number of shares outstanding 900,000. Round your answer to the nearest whole number.

Initial amount	New amount	Effect
900,000		-Select-increasedecreaseno changeItem 10

Earnings $4,500,000. Round your answer to the nearest dollar.

Initial amount	New amount	Effect
$4,500,000	$	-Select-increasedecreaseno changeItem 12