Purpose: To help familiarize you with the financial reporting of a real company in order to further your understanding of the chapter material you are learning.
This case continues our examination of Bombardier Inc. We will now study the shareholders’ equity of Bombardier Inc. Refer to the Bombardier Inc. financial statements found in MyAccountingLab. Look for the Consolidated Balance Sheets as well as the Consolidated Statements of Changes in Equity and Note 14.
Requirements
1. What was the balance of total shareholders' equity at January 31, 2011 and January 31, 2010? Did the amount of ending total shareholders’ equity increase or decrease? What seems to be the main reason for the change in total shareholders’ equity? What is the largest component of total shareholders’ equity?
2. Does Bombardier Inc. have any preferred shares authorized? Issued? Describe the preferred shares: voting or non-voting; cumulative or non-cumulative; redeemable (at what price) or not redeemable and their dividend rates.
3. Describe the classes of common shares that Bombardier has authorized and issued. How many common shares are issued and outstanding at the end of the 2011 fiscal year for each class? How many shares were issued and outstanding at the beginning of the year?
4. Look at the consolidated statements of shareholders’ equity. Did Bombardier Inc. declare any dividends in 2011? Can you determine whether Bombardier Inc. has been repurchasing its common shares? If so, has the amount of share repurchases been increasing or decreasing?
5. Examine the Statements of Cash Flows. How much cash was required to repurchase shares during 2011?