NAME: MUHAMMAD USMAN ZAFAR

I.D: 17278.
SEAT NO. 721
PROGRAM: MBA (W)
COURSE: ACCOUNTING FOR MANAGER
EXERCISE NO. 12.9
Five events pertaining to Lubbock Manufacturing Co. are described below.
a. Declared and paid a cash dividend.
b. Issued a 10 percent stock dividend.
c. Issued a 2-for-1 stock split.
d. Purchased treasury stock.
e. Reissued the treasury stock at a price greater than the purchase price.
Indicate the immediate effects of the events on the financial measurements in the four columnar
headings listed below. Use the code letters I for increase, D for decrease, and NE for no effect.

SOLUTION:
STOCKHOLDERS NET CASHFLOW
EVENT CURRENT ASSETS NET INCOME
EQUITY (From any source)
A Decrease Decrease No Effect Decrease
B No Effect No Effect No Effect No Effect
C No Effect No Effect No Effect No Effect
D Decrease Decrease No Effect Decrease
E Increase Increase No Effect Increase
SOLUTION:

Retained Earnings ( Working )