Question
Analyzing Shareholders Equity Presented below is the consolidated statement of shareholders equity for The Johnson & Johnson Company (J&J) at year-end: (in millions) Total Comprehensive
Analyzing Shareholders Equity Presented below is the consolidated statement of shareholders equity for The Johnson & Johnson Company (J&J) at year-end:
(in millions) | Total |
| Comprehensive Income |
| Retained Earnings |
| Notes Receivable From ESOP |
| Accumulated Other Comprehensive Income |
| Common Stock |
| Treasury Stock |
Beginning balance | $31,813 |
|
|
| $35,223 |
| $(11) |
| $(515) |
| $3,120 |
| $(6,004) |
Net earnings | 10,411 |
| 10,411 |
| 10,411 |
|
|
|
|
|
|
|
|
Cash dividends paid | (3,793) |
|
|
| (3,793) |
|
|
|
|
|
|
|
|
Employee stock compensation and |
|
|
|
|
|
|
|
|
|
|
|
|
|
stock option plans | 1,017 |
|
|
| (441) |
|
|
|
|
|
|
| 1,458 |
Conversion of subordinated debentures | 369 |
|
|
| (132) |
|
|
|
|
|
|
| 501 |
Repurchase of common stock | (1,717) |
|
|
| 203 |
|
|
|
|
|
|
| (1,920) |
Other comprehensive income, net of tax | - |
|
|
|
|
|
|
|
|
|
|
|
|
Currency translation adjustment | (415) |
| (415) |
|
|
|
|
| (415) |
|
|
|
|
Unrealized losses on securities | (16) |
| (16) |
|
|
|
|
| (16) |
|
|
|
|
Pension liability adjustment | 26 |
| 26 |
|
|
|
|
| 26 |
|
|
|
|
Gains on derivatives & hedges | 165 |
| 165 |
|
|
|
|
| 165 |
|
|
|
|
Reclassification adjustment |
|
| (15) |
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
|
| $10,156 |
|
|
|
|
|
|
|
|
|
|
Note receivable from ESOP | 11 |
|
|
|
| 11 |
|
|
| ||||
Ending balance | $37,871 |
|
|
| $41,471 |
| $- |
| $(755) |
| $3,120 |
| $(5,965) |
Based on your review of this data, consider the following questions:
1. How much cash dividends did J&J pay during the year? (in millions)
$Answer million
2. What was the value of the common stock distributed to employees under J&Js stock compensation plan and stock option plan? (in millions)
$Answer million
Where did J&J get the shares to distribute to its employees?
$Answer-Options: Common stock, treasury stock, or additional paid in capital
3. What was the value of the convertible subordinated debentures converted into common stock during the year? (in millions)
$Answer million
Where did J&J get the shares to give to the debentureholders?
$Answer-Options: Common stock, treasury stock, or additional paid in capital
4. What was the value of the treasury stock repurchase during the year? (in millions)
$Answer million
5. What was the change in J&Js currency translation adjustment account? (in millions)
$Answer million
Did the U.S. dollar appreciate, depreciate, or remain unchanged during the year?
$Answer-Options: Appreciate, depreciate, no change
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