enter increase, decrease, or no change Problem 11-6A The condensed statement of

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enter increase, decrease, or no change

Problem 11-6A The condensed statement of financial position of Laporte Corporation reports the following amounts: LAPORTE CORPORATION Statement of Financial Position (partial) June 30, 2015 Total assets Total liabilities Shareholders' equity $16,196,300 $6,138,700 $1,633,600 Common shares, unlimited number authorized, 408,400 issued Retained earnings 8,424,000 10,057,600 $16,196,300 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 dividend 2. Distribution of a 5% stock dividend 3. A 3-for-2 stock split 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) Total shareholders' equity (6) Number of shares Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Cash Dividend Stock Dividend Stock Split 1 Assets Decrease No Effect No Effect 2 Liabilities No Effect No Effect No Effect 3 Common Shares No Effect Increase No Effect 4 Retained Earnings Decrease Decrease No Effect 5 Total Shareholders' Equity Decrease No Effect No Effect 6 Number of Shares No Effect Increase Increase

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