Following is the consolidated statement of stockholders€™ equity of Costco Wholesale Corporation for the year ended August 28, 2011:

Required
1. Costco has an item in the statement of stockholders€™ equity called other comprehensive income. What are 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 stockholders€™ equity?

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Costco Wholesale Corporation Consolidated Statements of Equity and Comprehensive Income (dollars in millions) Total Costco Accumulated Other Additional Total Equity Comprehensive Retained Stockholders' Noncontrolling Income Paid-in Earnings Equity Capital Interests BALANCE AT AUGUST 29, 2010 4,115 10,829 122 6,590 101 10,930 Initial consolidation of noncontrolling interest in Costco Mexico 357 357 Comprehensive Income: Net income 1,462 1,542 1,462 Unrealized gain on short-term investments, net of ($1) tax Foreign-currency translation adjustment and other Comprehensive income Stock options exercised and release of vested restricted stock units, including tax effects 250 250 24 274 1,713 104 1,817 281 281 281 Conversion of convertible notes 2 Repurchases of common stock Stock-based compensation (89) (552) (641) (641) 207 207 207 Cash dividends (389) (389) (389) Investment by noncontrolling interest BALANCE AT AUGUST 28, 2011 $4,516 $373 $7,111 $12,002 $571 $12,573