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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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