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The Following Items Appeared on the Financial Statements of Monroe,Inc

question 73

Short Answer

The following items appeared on the financial statements of Monroe,Inc.on December 31,2015:
On September 10,2016,when the market value of the Monroe stock was $140 the company declared and distributed an 8% stock dividend.Indicate whether each of the following statements is true or false.
_____ a)Retained earnings would increase by $224,000 as a result of the stock dividend.
_____ b)The balance in common stock would increase by $64,000 as a result of the stock dividend.
_____ c)Total paid-in capital would be $2,224,000 after the dividend had been distributed.
_____ d)Total equity would not be affected by the dividend.
_____ e)Cash flow from financing activities would increase by $224,000 as a result of the stock dividend.
The following items appeared on the financial statements of Monroe,Inc.on December 31,2015: On September 10,2016,when the market value of the Monroe stock was $140 the company declared and distributed an 8% stock dividend.Indicate whether each of the following statements is true or false. _____ a)Retained earnings would increase by $224,000 as a result of the stock dividend. _____ b)The balance in common stock would increase by $64,000 as a result of the stock dividend. _____ c)Total paid-in capital would be $2,224,000 after the dividend had been distributed. _____ d)Total equity would not be affected by the dividend. _____ e)Cash flow from financing activities would increase by $224,000 as a result of the stock dividend.

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Appealing to Customers

The process of attracting potential buyers by identifying and fulfilling their needs, desires, and preferences with products or services.

Volatile Environment

A situation or context characterized by rapid and unpredictable changes often challenging for businesses and individuals to navigate.

Technological Change

The innovation or adoption of new technologies and processes within an industry or society.

Economic Turmoil

A period of financial instability and uncertainty affecting economies at either a local, national, or global level.

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