Question
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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