On January 1, Biofuel Corporation had the following capital structure: Common st
ID: 2529281 • Letter: O
Question
On January 1, Biofuel Corporation had the following capital structure: Common stock ($0.20 par value) Additional paid-in capital Retained earnings Treasury stock Cash flows from financing activities $73,000 2,030,000 930,000 0 25,500 Required: Complete the table below for each of the three following independent cases: Case 1: The board of directors declared and paid a cash dividend of $0.01 per share. Case 2: The board of directors declared and issued a 100 percent stock dividend when the stock was selling at $12 per share Case 3: The board of directors announced a 2-for-1 stock split. The market price prior to the split was $23 per share. Items Before any Dividend After Cash Dividend After Stock Dividend After Stock Split Common stock account Par per share Shares outstanding Additional paid-in captial Retained earnings Total stockholder's equity Cash flows from financing acitivitiesExplanation / Answer
After After After Items Before cash stock Stock any div div dividend Split common stock acccount 73,000 73,000 146000 73,000 par per share 0.2 0.2 0.2 0.1 shares oustanding 365000 365000 730000 730000 Addittional paid in capital 2,030,000 2,030,000 2,030,000 2,030,000 Retained earnings 93,000 89350 20000 93,000 total stockholders Equiyt 2,196,000 2,192,350 2,196,000 2,196,000 cash flows from fiancing activity 25,500 21850 25,500 25,500 cash dividend = 365000 shares *$0.01 3650 stock dividend = 365000*.2 = 73000