## Answers

req a &b ) Effects of the events & reason: | |||||

Event | Current Assets | Stockholders' Equity | Net Income | Net Cash Flow | Reasons |

1. Declaring dividend | NE | D | NE | I | RE reduces, Dividend payable increase |

2. Dividend paid | D | NE | NE | D | Cash reduces, Dividend payable reduces |

3. Purchase Treasury Stock | D | D | NE | D | Cash reduces, RE reduces |

4. Reissue of Treasury Stock | I | I | NE | I | Cash increases, TS decreses |

5. Stock dividend | NE | NE | NE | I | Stock / paid in capital increases, RE reduces |

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