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  • The Condensed Statement of Financial Position of Laporte Corporation Reports

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    Miroslav Gegoski
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    The condensed statement of financial position of Laporte Corporation reports their assets at $10 million, liabilities at $4 million, common shares at $2 million, and retained earnings at $4 million. Laporte is considering a $1.50 per share cash dividend, a 5% stock dividend, or a 3-for-2 stock split and wants to assess the impact of each alternative on its financial statements and the advantages and disadvantages for the company.

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    The Condensed Statement of Financial Position of Laporte Corporation Reports

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    The condensed statement of financial position of Laporte Corporation reports their assets at $10 million, liabilities at $4 million, common shares at $2 million, and retained earnings at $4 million. Laporte is considering a $1.50 per share cash dividend, a 5% stock dividend, or a 3-for-2 stock split and wants to assess the impact of each alternative on its financial statements and the advantages and disadvantages for the company.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Download as pdf or txt
    15 views2 pages

    The Condensed Statement of Financial Position of Laporte Corporation Reports

    Uploaded by

    Miroslav Gegoski
    The condensed statement of financial position of Laporte Corporation reports their assets at $10 million, liabilities at $4 million, common shares at $2 million, and retained earnings at $4 million. Laporte is considering a $1.50 per share cash dividend, a 5% stock dividend, or a 3-for-2 stock split and wants to assess the impact of each alternative on its financial statements and the advantages and disadvantages for the company.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
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    The condensed statement of financial position of Laporte

    Corporation reports #8670


    The condensed statement of financial position of Laporte Corporation reports

    The condensed statement of financial position of Laporte Corporation reports the following
    amounts:

    The common shares are currently trading for $30 per share. Laporte wants to assess the impact
    of three possible alternatives:

    1. Payment of a $1.50 per share cash dividend

    2. Distribution of a 5% stock dividend

    3. A 3-for-2 stock split

    Instructions

    (a) Determine the impact of each alternative on (1) assets, (2) liabilities, (3) common shares, (4)
    retained earnings, (5) total shareholders' equity, and (6) the number of shares.

    (b) Identify the advantages and disadvantages of each alternative for the company.

    The condensed statement of financial position of Laporte Corporation reports

    ANSWER
    http://paperinstant.com/downloads/the-condensed-statement-of-financial-position-of-laporte-
    1/2
    corporation-reports/

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