Problem 10-07

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

1. Earnings per share $3.75. Round your answer to the nearest cent.
2. Initial amount New amount Effect$3.75$-Select-increasedecreaseno change
3. Item 2
4. Total equity $9,000,000. Round your answer to the nearest dollar.
5. Initial amount New amount Effect$9,000,000$-Select-increasedecreaseno change
6. Item 4
7. Long-term debt $4,600,000. Round your answer to the nearest dollar.
8. Initial amount New amount Effect$4,600,000$-Select-increasedecreaseno change
9. Item 6
10. Additional paid-in capital $1,558,000. Round your answer to the nearest dollar.
11. Initial amountNew amountEffect$1,558,000$-Select-increasedecreaseno change
12. Item 8
13. Number of shares outstanding 1,200,000. Round your answer to the nearest whole number.
14. Initial amountNew amountEffect1,200,000-Select-increasedecreaseno change
15. Item 10
16. Earnings $4,500,000. Round your answer to the nearest dollar.
17. Initial amountNew amountEffect$4,500,000$-Select-increasedecreaseno change
18. Item 12