Omega Sports Has the Following Equity Accounts on Its Balance

question 171

Multiple Choice

Omega Sports has the following equity accounts on its balance sheet: $\begin{array}{lr}\text { Common stock ( } \$ .50 \text { par, } 900,000 \text { shares) } & \$ 450,000 \\\text { Paid in excess } & 5,580,000 \\\text { Retained earnings } & 21,204,000 \\\text { T otal common stockholders' equity } & \$ 27,234,000\end{array}$ The current market price of the firm's shares is $20. If the firm declares a 10 percent stock dividend followed by a cash dividend of $0.10 per share, the retained earnings account would change to

• A) $21,060,000
• B) $19,305,000
• C) $25,335,000
• D) $19,404,000

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Definitions:

Cerebrospinal fluid

A clear, colorless body fluid found in the brain and spinal cord, acting as a cushion for the brain's cortex, providing basic mechanical and immunological protection to the brain inside the skull.

Arachnoid mater

A delicate membrane that is one of the three layers of the meninges, situated between the dura mater and the pia mater, enveloping the brain and spinal cord.

Interneurons

Structures found only in the central nervous system that link sensory and motor neurons together.

Efferent nerves

Nerves that carry signals away from the central nervous system to effectors like muscles and glands, facilitating action and response.