On June 30, 2017, Stephans, Inc

question 82

Multiple Choice

On June 30, 2017, Stephans, Inc. showed the following data on the equity section of their balance sheet: On July 1, 2017, the company declared and distributed a 6% stock dividend. The market value of the stock at that time was $15 per share. Following this transaction, what is total stockholders' equity?

• A) $1,369,000
• B) $1,545,380
• C) $1,295,920
• D) $1,185,400

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Definitions:

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, part of the cash flow statement.

Cash Dividend

A cash dividend is a payment made by a company out of its profits to shareholders in the form of cash, usually on a quarterly basis.

Equipment Purchase

The acquisition of physical assets like machinery and technology for use in operations, often considered a capital expenditure.

Direct Method

A method of reporting cash flows from operating activities by showing major classes of gross cash receipts and payments.