Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

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 effect

Explanation / 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

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote