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HE 7 Questions - Updated-1
HE 7 Questions - Updated-1
Liabilities: No data
Liabilities No data
$37,800
Stockholders’ equity: No data
Common stock, $1 par No data
6,000
Paid-in capital in excess of par, common No data
19,400
Retained earnings No data
22,000
Total liabilities and equity No data
$85,200
During 2016, Safety Network Corporation completed these transactions that affected
stockholders’ equity:
1. What are the journal or worksheet entries for Safety Network’s transactions?
2. What is Safety Network’s stockholders’ equity at December 31, 2016? Net income for
2016 was $27,000.
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Question 2: Verizon - Shareholders’ Equity
The following pages contain Statement of Changes in Shareholders’ Investment for Verizon
from the 2005 annual report. Using this information, please answer the following questions:
1. What was the number of common shares outstanding at the end of 2005?
b. What was the average price per share Verizon paid for the shares it repurchased in
2005?
d. What was the average price Verizon received from issuing shares to employees and
shareowners in 2005?
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Consolidated Statements of Changes in Shareowners’ Investment
(dollars in millions, except per share amounts, and shares in
thousands)
Years Ended December 31, 2005 2004 2003
Shares Amount Shares Amount Shares Amount
Common Stock No data No data No data No data No data No data
Balance at beginning of year 2,774,86 $277 2,772,31 $277 2,751,650 $275
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Shares issued No data No data No data No data No data No data
Employee plans - - 2,501 - 20,664 2
Shareowner plans - - 50 - - -
Shares retired - - - - - -
Balance at end of year 2,774,86 277 2,774,86 277 2,772,314 277
5 5
No data No data No data No data No data
Contributed Capital
Balance at beginning of year No data 25,404 No data 25,363 No data 24,685
Shares issued-employee and shareowner plans No data (24) No data 2 No data 725
Tax benefit from exercise of stock options No data - No data 41 No data 12
Other No data (11) No data (2) No data (59)
Balance at end of year No data 25,369 No data 25,404 No data 25,363
No data No data No data No data No data No data
Reinvested Earnings
Balance at beginning of year No data 12,984 No data 9,409 No data 10,536
Net income No data 7,397 No data 7,831 No data 3,077
Dividends declared ($1.62, $1.54 and $1.54 per No data (4,479) No data (4,265) No data (4,250)
share)
Shares issued-employee and shareowner plans No data - No data - No data 39
Other No data 3 No data 9 No data 7
Balance at end of year No data 15,905 No data 12,984 No data 9,409
No data No data No data No data No data No data
Accumulated Other Comprehensive Loss
Balance at beginning of year No data (1,053) No data (1,250) No data (2,110)
Foreign currency translation adjustment No data (755) No data 548 No data 568
Unrealized gains on net investment hedges No data 2 No data - No data -
Unrealized gains (losses) on marketable securities No data (21) No data 7 No data 1
Unrealized derivative gains (losses) on cash flow No data 10 No data 17 No data (21)
hedges
Minimum pension liability adjustment No data 34 No data (375) No data 312
Other comprehensive income (loss) No data (730) No data 197 No data 860
Balance at end of year No data (1,783) No data (1,053) No data (1,250)
No data No data No data No data No data No data
Treasury Stock
Balance at beginning of year (5,213) (142) (4,554) (115) (8,624) (218)
Shares purchased (7,859) (271) (9,540) (370) - -
Shares distributed No data No data No data No data No data No data
Employee plans 1,594 59 8,881 343 4,047 102
Shareowner plans 22 1 - - 23 1
Balance at end of year (11,456) (353) (5,213) (142) (4,554) (115)
No data No data No data No data No data No data
Deferred Compensation-ESOPs and Other
Balance at beginning of year No data 90 No data (218) No data (552)
Amortization No data 174 No data 301 No data 312
Other No data 1 No data 7 No data 22
Balance at end of year No data 265 No data 90 No data (218)
Total Shareowners’ Investment No data $39,680 No data $37,560 No data $33,466
No data No data No data No data No data
Comprehensive Income
Net income No data $7,397 No data $7,831 No data $3,077
Other comprehensive income (loss) per above No data (730) No data 197 No data 860
Total Comprehensive Income No data $6,667 No data $8,028 No data $3,937
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Question 3: Coca Cola - Shareholders’ Equity
Using the attached excerpts from Coca-Cola’s 2006 Annual Report answer the following
questions. In addition:
- All numbers in Coca-Cola’s 2006 Financial Statements are in $ millions.
- Provide calculations when necessary.
(a) How many shares of common stock were authorized at fiscal year-end 2006? How
many had been issued as of fiscal year-end 2006?
(b) Coca-Cola also has repurchased some of its own shares of stock that had been
previously issued (Treasury Stock). How many shares did Coca Cola hold as treasury
stock at the end of 2006?
(c) How many total shares were outstanding at fiscal year-end 2006?
2. Common Stock
(a) What is the par value of each share of common stock issued?
(b) How much money in excess of the par value of the stock had been contributed by
shareholders by the end of 2006?
(c) How much did Coca Cola pay for Treasury Stock it held at fiscal year-end 2006?
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4. Earnings per share
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THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
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THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
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THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREOWNERS’ EQUITY
1
Common stock purchased from employees exercising stock options numbered approximately zero shares, 0.5 shares and 0.4
shares for the years ended December 31, 2006, 2005 and 2004, respectively.
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THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
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