E F G problem answers
11:17 Done E8.37_dcdffoe39659f1bc7e06e9... ' = - - D E8-37. Analyzing and Computing Average Issue Price and Treasury Stock Cost Following is the stockholders' equity section from the Campbell Soup Company balance sheet. Note: Campbell's uses shareowners' equiry in lieu of the more common title of stockholders' equity. Shareowners' Equity (millions, except per share amounts) July 29, 2018 July 30, 2017 Preferred stock: authorized 40 shares; none issued ... $ $ Capital stock. $.0375 par value: authorized 560 shares; issued 323 shares.... 12 12 Additional paid-in capital.. 349 359 Earnings retained in the business 2,224 2,385 Capital stock in treasury, at cost. (1.103) (1.066) Accumulated other comprehensive loss.. (118) (53) Total Campbell Soup Company shareowners' equity.. 1,364 1.637 Noncontrolling interests Total equity.... $1.373 $1,645 9 8 Campbell Soup Company also reports the following statement of stockholders' equity. Capital Stock Earnings Accumulated Issued In Treasury Additional Retained Other (millions, except per Paid-in in the comprehensive Noncontrolling Total share amounts) Shares Amount Shares Amount Capital Business Income (Loss) Interests Equity Balance at July 30, 2017 323 $12 (22) S(1,066) $359 $2,385 S(53) $8 $1,645 Net eamings 261 261 Other comprehensive income (loss) (65) (64) Dividends ($1.40 per share). (422) (422) Treasury stock purchased (2) (86) (86) Treasury stock issued under management incentive and stock option plans. 2 (10) 39 Balance at July 29, 2018 323 $12 (22) S(1,103) 349 $2,224 S(118) $1,373 1 49 a. Show the computation, using par value and share numbers, to arrive at the $12 million in the capital (common) stock account. b. At what average price were the Campbell Soup shares issued? c. Reconcile the beginning and ending balances of retained earnings. d. Campbell Soup reports an increase in shareowners' equity relating to the exercise of stock options (titled "Treasury stock issued under management incentive and stock option plans"). This transac- tion involves the purchase of common stock by employees at a preset price. Describe how this set of transactions affects stockholders' equity. e Describe the transaction relating to the Treasury stock purchased" line in the statement of share- owners' equity . Campbell Soup's stock price was $32.99 on July 29, 2018. Determine the company's market capi- talization that day. & Calculate and interpret the company's market-to-book ratio at July 29, 2018. 11:17 Done E8.37_dcdffoe39659f1bc7e06e9... ' = - - D E8-37. Analyzing and Computing Average Issue Price and Treasury Stock Cost Following is the stockholders' equity section from the Campbell Soup Company balance sheet. Note: Campbell's uses shareowners' equiry in lieu of the more common title of stockholders' equity. Shareowners' Equity (millions, except per share amounts) July 29, 2018 July 30, 2017 Preferred stock: authorized 40 shares; none issued ... $ $ Capital stock. $.0375 par value: authorized 560 shares; issued 323 shares.... 12 12 Additional paid-in capital.. 349 359 Earnings retained in the business 2,224 2,385 Capital stock in treasury, at cost. (1.103) (1.066) Accumulated other comprehensive loss.. (118) (53) Total Campbell Soup Company shareowners' equity.. 1,364 1.637 Noncontrolling interests Total equity.... $1.373 $1,645 9 8 Campbell Soup Company also reports the following statement of stockholders' equity. Capital Stock Earnings Accumulated Issued In Treasury Additional Retained Other (millions, except per Paid-in in the comprehensive Noncontrolling Total share amounts) Shares Amount Shares Amount Capital Business Income (Loss) Interests Equity Balance at July 30, 2017 323 $12 (22) S(1,066) $359 $2,385 S(53) $8 $1,645 Net eamings 261 261 Other comprehensive income (loss) (65) (64) Dividends ($1.40 per share). (422) (422) Treasury stock purchased (2) (86) (86) Treasury stock issued under management incentive and stock option plans. 2 (10) 39 Balance at July 29, 2018 323 $12 (22) S(1,103) 349 $2,224 S(118) $1,373 1 49 a. Show the computation, using par value and share numbers, to arrive at the $12 million in the capital (common) stock account. b. At what average price were the Campbell Soup shares issued? c. Reconcile the beginning and ending balances of retained earnings. d. Campbell Soup reports an increase in shareowners' equity relating to the exercise of stock options (titled "Treasury stock issued under management incentive and stock option plans"). This transac- tion involves the purchase of common stock by employees at a preset price. Describe how this set of transactions affects stockholders' equity. e Describe the transaction relating to the Treasury stock purchased" line in the statement of share- owners' equity . Campbell Soup's stock price was $32.99 on July 29, 2018. Determine the company's market capi- talization that day. & Calculate and interpret the company's market-to-book ratio at July 29, 2018
