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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