Costco’s Comprehensive Income Following is the consolidated statement of stockholders’ equity of Costco Wholesale Corporation for the year ended September 3, 2006:

Required 1. Costco has an item in the statement of stockholders’ equity that is Other Accumulated Comprehensive Income. What are the possible sources of other comprehensive income as discussed in your text?
2. Besides Net Income and Other Accumulated 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 stockholders’
equity?

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME For the period ended September 3, 2006 (in thousands) Common Stock Shares Amount Additional Paid-In Capital Other Accumulated Comprehensive Retained Income/(Loss) Earnings Total Adjusted balance at August 28, 2005 472,480 2,362 $2,244,191 $158,039 $6,484,673 $8,889,265 Comprehensive Income: Net Income Foreign currency translation adjustment and other 1,103,215 1,103,215 119,224 119,224 119,224 1,103,215 1,222,439 Total comprehensive income Stock options exercised, including income tax benefits and other 11,712 59 427,291 427,350 Conversion of convertible notes 6,505 33 188,902 188,935 Stock repurchase (28,418) (142) (145,129) (1,316,465) (1,461,736) Stock-based compensation 107,397 107,397 Cash dividends (230,211) (230,211) Balance at September 3, 2006 462,279 $2,312 $2,822,652 $277,263 $6,041,212 $9,143,439