Culver Company provides you with the following condensed balance sheet information:
|
Assets |
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|
Current assets |
$ 40,800 |
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|
Equity investments |
58,800 |
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|
Equipment (net) |
239,700 |
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|
Intangibles |
65,600 |
|||
|
Total assets |
$404,900 |
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|
Liabilities and Stockholders’ Equity |
||||
|
Current and long-term liabilities |
$94,400 |
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|
Stockholders’ equity |
||||
|
Common stock ($5 par) |
$ 18,900 |
|||
|
Paid-in capital in excess of par |
103,900 |
|||
|
Retained earnings |
187,700 |
310,500 |
||
|
Total liabilities and stockholders’ equity |
$404,900 |
For each of the following transactions, indicate the dollar impact (if any) on the following five items: (1) total assets, (2) common stock, (3) paid-in capital in excess of par, (4) retained earnings, and (5) stockholders’ equity. (Each situation is independent.)
(a) Culver declares and pays a $0.60 per share cash dividend.
(b) Culver declares and issues a 10% stock dividend when the market price of the stock is $13 per share.
|
(1) |
Total assets |
decrease increase no effect |
$ |
|||
|
(2) |
Common stock |
decrease increase no effect |
$ |
|||
|
(3) |
Paid-in capital in excess of par |
decrease increase no effect |
$ |
|||
|
(4) |
Retained earnings |
decrease increase no effect |
$ |
|||
|
(5) |
Total stockholders’ equity |
decrease increase no effect |
$ |
(c) Culver declares and issues a 30% stock dividend when the market price of the stock is $14 per share.
|
(1) |
Total assets |
decrease increase no effect |
$ |
|||
|
(2) |
Common stock |
decrease increase no effect |
$ |
|||
|
(3) |
Paid-in capital in excess of par |
decrease increase no effect |
$ |
|||
|
(4) |
Retained earnings |
decrease increase no effect |
$ |
|||
|
(5) |
Total stockholders’ equity |
decrease increase no effect |
$ |
(d) Culver declares and distributes a property dividend. Culver gives one share of its equity investment (ABC stock) for every two shares of Culver Company stock held. Culver owns 9,800 shares of ABC. ABC is selling for $10 per share on the date the property dividend is declared.
|
(1) |
Total assets |
decrease increase no effect |
$ |
|||
|
(2) |
Common stock |
decrease increase no effect |
$ |
|||
|
(3) |
Paid-in capital in excess of par |
decrease increase no effect |
$ |
|||
|
(4) |
Retained earnings |
decrease increase no effect |
$ |
|||
|
(5) |
Total stockholders’ equity |
decrease increase no effect |
$ |
(e) Culver declares a 2-for-1 stock split and issues new shares.
|
(1) |
Total assets |
decrease increase no effect |
$ |
|||
|
(2) |
Common stock |
decrease increase no effect |
$ |
|||
|
(3) |
Paid-in capital in excess of par |
decrease increase no effect |
$ |
|||
|
(4) |
Retained earnings |
decrease increase no effect |
$ |
|||
|
(5) |
Total stockholders’ equity |
decrease increase no effect |
$ |
