E8.12. Reformulation of an Equity Statement with Hidden Losses: Dell, Inc. (Hard) The following is a condensed version of the statement of shareholders' equity for Dell, Inc., for fiscal year ending January 31, 2003 (in millions of dollars): Balance at February 1, 2002 Net income Unrealized gain on debt investments Unrealized loss an derivative instruments Foreign currency translation gain Comprehensive income Shares issued on exercise of options, induding tax benefits of $260 Repurchase of 50 million shares Balance of January 31, 2003 4,694 2.122 26 (101) 2,051 418 (2,290) 4,873 Other information: 1. Dell's tax rate is 35 percent. 2. The share repurchase occurred when the stock traded at $28 per share. a What was the loss to shareholders from the exercise of stock options?

b. Prepare a reformulated statement of shareholders' equity for 2003 for Dell, Inc. The reformulated statement should identify comprehensive income and include all hidden items. Real World Connection Exercises E3.7, E3.14, E5.11, E13.16, and E19.4 also deal with Dell. Minicases MI0.1 and M15.2 cover Dell also.