Question

The stockholders’ equity section of Riverbed Corp’s balance sheet consists of common stock ($9 par) $1,179,000...

The stockholders’ equity section of Riverbed Corp’s balance sheet consists of common stock ($9 par) $1,179,000 and retained earnings $430,000. A 15% stock dividend (19,650 shares) is declared when the market price per share is $15.

(a) Show the before-and-after effects of the dividend on the components of stockholders’ equity.

Before Dividend

After Dividend

select an opening section name                                                          Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' EquityPaid-in CapitalTotal Paid-in Capital
select an opening subsection name                                                          Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' EquityPaid-in CapitalTotal Paid-in Capital
enter a balance sheet item

$enter a dollar amount

$enter a dollar amount

enter a balance sheet item enter a dollar amount enter a dollar amount
select a closing subsection name                                                          Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' EquityPaid-in CapitalTotal Paid-in Capital

enter a subtotal of the two previous amounts

enter a subtotal of the two previous amounts

enter a balance sheet item enter a dollar amount enter a dollar amount
select a closing section name                                                          Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' EquityPaid-in CapitalTotal Paid-in Capital $enter a total amount for this section $enter a total amount for this section


(b) Show the before-and-after effects of the dividend on the shares outstanding.

Before Dividend

After Dividend

Outstanding shares

enter a dollar amount

Homework Answers

Answer #1

(a) Show the before-and-after effects of the dividend on the components of stockholders’ equity.

Before Dividend

After Dividend

Stockholder's equity
Paid in capital
Common Stock 1179000 19650*9+1179000 = 1355850
Additional paid in capital 19650*6 = 117900
Total paid in capital 1179000 1473750
Retained earnings 430000 430000-294750 = 135250
Total Stockholder's equity 1609000 1609000


(b) Show the before-and-after effects of the dividend on the shares outstanding.

Before Dividend

After Dividend

Outstanding shares 131000 150650
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