Following is the consolidated statement of stockholders' equity of Costco Wholesale Corporation for the year ended August 31, 2014:

Required
1. Costco has an item in the statement of stockholders' equity called Accumulated Other Comprehensive Income. What arc the possible sources of other comprehensive income as discussed in your text?
2. Besides net income and other comprehensive income, what other items affected stockholders' equity during the period?
3. How do cash dividends affect stockholders' equity? How would a stock dividend affect stock-holders' equity?

Transcribed Image Text:

Costco Wholesale Corporation Consolidated Statements of Equity (amounts in millions) Additional Paid-in Capital 4,670 Accumulated Other Comprehensive Income (Loss) Total Costco Equity 10,833 Retained Stockholders Earnings (122) Balance at September 1, 2013 Net income Foreign-currency translation adjustment 6,283 2,058 2,058 46 46 and other, net Stock-based compensation Stock options exercised, including tax 327 327 58 effects Release of vested RSUs, including tax 58 (102) effects Conversion of convertible notes Repurchases of common stock Cash dividends declared Balance at August 31, 2014 (102) 299) (584) $7,458 (334) (584) $12,303 (35) $4,919 S (76)