The condensed statement of financial position of Laporte Corporation reports the
ID: 2517496 • Letter: T
Question
The condensed statement of financial position of Laporte Corporation reports the following amount:s LAPORTE CORPORATION Statement of Financial Position (partial) June 30, 2015 Total assets Total liabilities Shareholders' equity $16,517,300 $6,082,800 Common shares, unlimited number authorized, 405,700 $2,028,500 issued Retained earnings 8,406,000 10,434,500 $16,517,300 Total liabilities and shareholders' equity The common shares are currently trading for $29 per share. Laporte wants to assess the impact of three possible alternatives: 1 Payment of a $1.50 per share cash 2, Distribution of a 4% stock dividend 3. A 3-for-2 stock split dividend Determine the impact of each of the above alternative on each of the following Cash Dividend Stock Dividend Stock Split (1) Assets (2) Liabilities (3) Common shares (4) Retained earnings (5) equi (6) Number of shares Click if you would like to Show Work for this question: Total shareholders Increase Decrease No effectExplanation / Answer
Answer:
Cash
Dividend
Cash
Dividend
Stock
split
Assets
Decrease
No effect
No effect
Liability
No effect
No effect
No effect
Common share
No effect
Increase
No effect
Retained Earning
Decrease
Decrease
No effect
Total Share holder equity
Decrease
Decrease
No effect
No Of share
No effect
Increase
Increase
Cash
Dividend
Cash
Dividend
Stock
split
Assets
Decrease
No effect
No effect
Liability
No effect
No effect
No effect
Common share
No effect
Increase
No effect
Retained Earning
Decrease
Decrease
No effect
Total Share holder equity
Decrease
Decrease
No effect
No Of share
No effect
Increase
Increase
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