Beca Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. Help Beca make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Number of common shares Before Action $1,354,000 $258,000 657,000 439,000 1,096,000 $1,354,000 100,000 $ (1) After Cash Dividend 1304000 258000 657000 389000 1046000 11354000 100000 $ $ $ (2) After Stock Dividend 1354000 258000 722000 374000 1096000 1354000 105000 $ $ (3) After Stock Split 1354000 258000 657000 389000 1096000 1354000 100000

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 13PB: You are a consultant working with various companies that are considering incorporating and listing...
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Beca Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share.
Help Beca make its decision by completing the following chart (treat each possibility independently):
Total assets
Total liabilities
Shareholders' equity
Common shares
Retained earnings
Total shareholders' equity
Total liabilities and shareholders' equity
Number of common shares
Before Action
$1,354,000
$258,000
657,000
439,000
1,096,000
$1,354,000
100,000
$
$
$
(1)
After Cash
Dividend
1304000
258000
657000
389000
1046000
11354000
100000
$
$
$
(2)
After Stock
Dividend
1354000
258000
722000
374000
1096000
1354000
105000
$
$
$
(3)
After
Stock Split
1354000
258000
657000
389000
1096000
1354000
100000
Transcribed Image Text:Beca Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash dividend, (2) distributing a 5% stock dividend, or (3) effecting a 2-for-1 stock split. The current share price is $13 per share. Help Beca make its decision by completing the following chart (treat each possibility independently): Total assets Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Number of common shares Before Action $1,354,000 $258,000 657,000 439,000 1,096,000 $1,354,000 100,000 $ $ $ (1) After Cash Dividend 1304000 258000 657000 389000 1046000 11354000 100000 $ $ $ (2) After Stock Dividend 1354000 258000 722000 374000 1096000 1354000 105000 $ $ $ (3) After Stock Split 1354000 258000 657000 389000 1096000 1354000 100000
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