Discuss problem on outstanding shares

Reference no: EM131831233

Question: On October 31, the stockholders' equity section of Manolo Company's balance sheet consists of common stock $648,000 and retained earnings $400,000. Manolo is considering the following two courses of action:

(1) declaring a 5% stock dividend on the 81,000 $8 par value shares outstanding or

(2) effecting a 2-for-1 stock split that will reduce par value to $4 per share. The current market price is $17 per share.

Instructions: Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares. Use these column headings: Before Action, After Stock Dividend, and After Stock Split.

Reference no: EM131831233

Questions Cloud

Prepare entries for capital stock transactions : On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions.

How are dividends and dividends payable reported : On January 1, Graves Corporation had 60,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share.

Describe culturally appropriate communication techniques : BSBADM405 Organise Meetings Assignment. Describe culturally appropriate communication techniques. Identify requirements for this meeting

Productivity improvements offered by the HR module : "Does it make sense to invest in the productivity improvements offered by the HR module?"

Discuss problem on outstanding shares : Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares.

What is your incremental cash flow from selling the machine : If you sell the machine today (after three years of depreciation) for $ 748 000, what is your incremental cash flow from selling the machine?

How much money will you have on the date of your retirement : How much money will you have on the date of your retirement 35 years from today?

Discuss about the balance sheet for wells fargo : Wells Fargo & Company, headquartered in San Francisco, is one of the nation's largest financial institutions.

Making monthly contributions to savings program : Many persons prepare for retirement by making monthly contributions to a savings program.

User Account

All Pages