1. Answer the following questions. (Hint: Apply the accounting equation.)

a. Prada, an Italian luxury fashion house, had assets equal to 3,888 million and liabilities equal to 1,187 million for January 31, 2014. What was the total equity for Pradas business at year-end?

b. Rogers Communications Inc. is a Canadian communications and media company. At the beginning of 2013, the companys assets were $19,618 million and its equity was $3,768 million. During the year, assets increased $3,983 million and liabilities increased $3,082 million. What was its equity at the end of the year?

c. At the beginning of 2013, Carrefour, a French retailer, reported liabilities of 37,959 (in thousands). During the year, assets decreased by 2,442, and year-end assets equaled 43,564. Liabilities decreased 2,992 during the year. What were its beginning and ending amounts for equity? All numbers are in thousands of Euro.

2. Financial Statement Relations to Compute Dividends Adidas, a German sporting goods company, reports the following balances in its retained earnings.

($ millions) 2013 2012

Retained earnings ........................................ $4,959 $4,454

During 2013, Adidas reported net income of 790 million.

a. Assume that the only changes affecting retained earnings were net income and dividends. What amount of dividends did Adidas pay to its shareholders in 2013?

b. This dividend amount constituted what percent of its net income?