Question
25 Stockholders equity last year was $580 and this year is $620. Last years retained earnings was $22 and this years retained earnings is $23.
25 Stockholders equity last year was $580 and this year is $620. Last years retained earnings was $22 and this years retained earnings is $23. Is the change in stockholders equity a source or a use of funds and how much is its dollaramount?
a. Stockholders equity is higher than expected by $40. So SE is a source telling us stock was issued.
b. Stockholders equity is higher than expected by $12. So SE is a source telling us stock was repurchased.
c. Stockholders equity is higher than expected by $40. So SE is a source telling us stock was repurchased.
d. Stockholders equity is higher than expected by $12. So SE is a source telling us stock was issued.
e. Stockholders equity is as expected and so stock was neither issued or repurchased
26 Stockholders equity last year was $300 and this year is $277. Last years retained earnings was $25 and this years retained earnings is $28. Is the change in stockholders equity a source or a use of funds and how much is its dollar amount?
a. Stockholders equity is less than expected by $8. So SE is a source telling us stock was issued.
b. Stockholders equity is less than expected by $23. So SE is a source telling us stock was repurchased.
c. Stockholders equity is less than expected by $23. So SE is a source telling us stock was repurchased.
d. Stockholders equity is less than expected by $8. So SE is a source telling us stock was issued.
e. Stockholders equity is as expected and so stock was neither issued or repurchased
I did not get how to get the answer. Need detailed explanation
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