Response to the following questions:
1. What is the primary purpose of a stock split?
2. Carabiner Co. sold 28,000 annual magazine subscriptions for $40 during December 2012. These new subscribers will receive monthly issues, beginning in January 2013. In addition, the business had taxable income of $130,000 during the first calendar quarter of 2013. The federal tax rate is 40%. A quarterly tax payment will be made on April 15, 2013.
Prepare the Current Liabilities section of the balance sheet for Carabiner Co. on March 31, 2013.