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Calculate EPS after stock dividend is paid and what impact would the stock dividend have on Gordong manufactures on Balance Sheet.

Calculate EPS after stock dividend is paid and what impact would the stock dividend have on Gordong manufactures on Balance Sheet.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 24BEA: During 20X2, Norton Company had the following transactions: a. Cash dividends of 20,000 were paid....
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Net Income for the year is $ 45 Million.Calculate EPS after stock dividend is paid and what impact would the stock dividend have on Gordong manufactures on Balance Sheet.

Gordon Manufactures has the following equity accounts in balance sheet Details Summit Inc. Common stock ($1 par) Capital Surplus Retained Earnings $15,000,000 $30,000,000 $150,000,000 The management of Gordon Manufactures is concerned with the relatively high price of its common stock, currently selling for $30 a share. It is also concerned with the relatively large entry that Gordon shows for retained earnings. Management would prefer to low the price to a more reasonable trading range while capitalizing a portion of retained earnings. Therefore, it declares a 20% stock dividend.
Transcribed Image Text:Gordon Manufactures has the following equity accounts in balance sheet Details Summit Inc. Common stock ($1 par) Capital Surplus Retained Earnings $15,000,000 $30,000,000 $150,000,000 The management of Gordon Manufactures is concerned with the relatively high price of its common stock, currently selling for $30 a share. It is also concerned with the relatively large entry that Gordon shows for retained earnings. Management would prefer to low the price to a more reasonable trading range while capitalizing a portion of retained earnings. Therefore, it declares a 20% stock dividend.
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