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The following is an incomplete statement of shareholders' equity (in millions of dollars). Balance, December 31, 1999 473 Net income ? Common dividends ? Preferred

The following is an incomplete statement of shareholders' equity (in millions of dollars).

Balance, December 31, 1999

473

Net income

?

Common dividends

?

Preferred dividends

(10)

Issue of common stock

152

Unrealized loss on securities available for sale

(19)

Foreign currency translation gain

12

Balance, December 31, 2000

?

The firm had no net debt (a pure equity firm) and reported a net profit margin of 12% of sales of $4,096 million in its 2000 income statement. The firm also generated free cash flow of $76 million during 2000.

a. Supply the missing numbers in the equity statement.

b. Reformulate the completed statement of shareholders' equity to identify comprehensive income for the common shareholders.


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Question 4 (15 Points) The following is an incomplete statement of shareholders' equity (in millions of dollars). Balance, December 31, 1999 473 Net income ? Common dividends ? Preferred dividends (10) 152 Issue of common stock Unrealized loss on securities available for sale (19) Foreign currency translation gain 12 Balance, December 31, 2000 ? The firm had no net debt (a pure equity firm) and reported a net profit margin of 127% of sales of $4,096 million in its 2000 income statement. The firm also generated free cash flow of $76 million during 2000. a. Supply the missing numbers in the equity statement b. Reformulate the completed statement of shareholders' equity to identify comprehensive income for the common shareholders

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