The following is the Statement of Shareholders Equity from Cisco Systems 2011 annual report. Remember that for

The following is the Statement of Shareholders’ Equity from Cisco Systems’ 2011 annual report. Remember that for comparative purposes, three years are reported in these statements. The 2010 and 2009 portions of the statement are not shown here for brevity of presentation.

Required:
1. What is the purpose of the statement of shareholders’ equity?
2. How does Cisco account for its share buybacks?
3. For its share buybacks in fiscal year 2011, was the price Cisco paid for the shares repurchased more or less than the average price at which Cisco had sold the shares previously? Reconstruct the journal entry Cisco used to record the buyback.
4. What is comprehensive income? What is other comprehensive income?
5. What caused the change in Cisco’s comprehensive income in fiscal year 2011? What was the amount of Accumulated other comprehensive income (loss) that Cisco reported in its July 30, 2011 balance sheet? Bespecific.

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CISCO SYSTEMS, INC Consolidated Statements of Shareholders' Equity (in part) Common Stock and Shares Accumulated Other Income S623 Total Equity S44,267 Common Addition Retained Comprehensive Shareholders' (S in millions) Stock Paid-In Capital Earnings 5,655 Balance at July 31, 2010 Net income Change in: S37,793 $5,851 6,490 6,490 Unrealized gains and losses on 154 (21) 154 (21) Derivative instruments Cumulative translation adjustment and other 538 Comprehensive income Issuance of common stock Repurchase of common stock 538 7,161 1,831 (6,974) (658) 141 (361) 1,831 (2,575) (4,399) (658) Cash dividends declared Tax effects from employee stock incentive plans (33) 12 (33) 12 Purchase a cquisitions 1,620 S38,648 1,620 $47,226 expense Balance at July 30, 2011 5,435 $7,284 S 1,294