Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Analyzing and Computing Average Issue Price and Treasury Stock Cost Assume this is the stockholders' equity section from the Campbell Soup Company balance sheet. Shareholders'
Analyzing and Computing Average Issue Price and Treasury Stock Cost Assume this is the stockholders' equity section from the Campbell Soup Company balance sheet.
Shareholders' Equity (millions, except per share amounts) | August 3, 2008 | July 29, 2007 |
---|---|---|
Preferred stock: authorized 40 shares; non issued | $ -- | $ -- |
Capital stock, $0.0375 par value; authorized 560 shares; issued 532 shares | 20 | 20 |
Additional paid-in capital | 337 | 331 |
Earnings retained in the business | 7,902 | 7,032 |
Capital stock in treasury, 186 shares in 2008 and 163 shares in 2007, at cost | (6,812) | (6,015) |
Accumulated other comprehensive loss | (136) | (123) |
Total shareholders' equity | $ 1,311 | $ 1,245 |
Assume Campbell Soup Company also reports the following statement of stockholders' equity.
(Millions, except per share amounts) | Capital Stock | Additional Paid-in Capital | Earnings Retained in the Business | Accumulated Other Comprehensive Income (Loss) | Total share-owners' Equity | |||
---|---|---|---|---|---|---|---|---|
Issued | In Treasury | |||||||
Shares | Amount | Shares | Amount | |||||
Balance at July 29, 2007 | 532 | $ 20 | (163) | $ (6,015) | $ 331 | $ 7,032 | $ (123) | $ 1,245 |
Comprehensive income (loss) | ||||||||
Net earnings | 1,185 | 1,185 | ||||||
Foreign currency translation adjustments, net of tax | 112 | 112 | ||||||
Cash-flow hedges, net of tax | 11 | 11 | ||||||
Pension and postretirement ;benefits, net of tax | (136) | (136) | ||||||
Other comprehensive loss | (13) | (13) | ||||||
Total comprehensive income | 1,172 | |||||||
Impact on adoption of FIN 48 Note 10) | (8) | (8) | ||||||
Dividends ($0.88 per share) | (307) | (307) | ||||||
Treasury stock purchased | (26) | (903) | (903) | |||||
Treasury stock issued under management incentive and stock options plan | 3 | 106 | 6 | 112 | ||||
Balance at August 3, 2008 | 532 | $ 20 | (186) | $ (6,812) | $ 337 | $ 7,902 | $ (136) | $ 1,311 |
(b) At what average price were the Campbell Soup shares issued? (Round your answer to two decimal places.) $Answer
(c) Reconcile the beginning and ending balances of retained earnings. ($ millions)
(Enter any deductions as negative numbers.)
($ millions) | |
---|---|
Retained earnings, July 29, 2007 | $Answer
|
Net earnings | Answer
|
Dividends | Answer Incorrect 0.00 points out of 1.00 |
Miscellaneous | Answer
|
Retained earnings, August 3, 2008 | $ Answer
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started