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Question - At the beginning of the year, the stockholders' equity section of the balance sheet of Solutions Corporation reflected the following:
Common stock ($15 par value; 66,000 shares authorized, 48,000 shares outstanding) $720,000
Additional paid-in capital 132,000
Retained earnings 756,000
On February 1, the board of directors declared a 65 percent stock dividend to be issued April 30. The market value of the stock on February 1 was $18 per share. The market value of the stock on April 30 was $18 per share.
Required - For comparative purposes, prepare the Stockholders' Equity section of the balance sheet immediately after the stock dividend.
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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