ACCY500 Mod7 Spring2024 Updated
ACCY500 Mod7 Spring2024 Updated
ACCY500 Mod7 Spring2024 Updated
Module 7 - Solution
Oktay Urcan
QUESTION ONE
Safety Network Corporation reported the following
summarized balance sheet at December 31, 2015:
Assets
Current assets $33,400
Property and equipment, net 51,800
Total asset $85,200
Liabilities
Liabilities $37,800
Stockholders’ equity
Common stock, $1 par 6,000
Paid-in capital in excess of par, common 19,400
Retained earnings 22,000
Total liabilities and equity $85,200
Safety Network Corporation - Shareholders’ Equity
QUESTION ONE
During 2016, Safety Network Corporation
completed these transactions that affected
stockholders’ equity:
March 13 Issued 2,000 shared of common stock for $4 per share.
July 7 Declared dividends of $2 per common share.
July 24 Paid the cash dividend.
October 26 Reacquired 500 shares of common stock as treasury stock,
paying $7 per share.
November 20 Sold 200 shares of the treasury stock for $8 per share.
TWO
Shares Amount Shares Amount Shares Amount
Common Stock
Balance at beginning of year 2,774, 865 $277 2,77,314 $277 2,751,650 $275
Shares issued
Shareowner plans _ _ 50 _ _ _
Shares retired _ _ _ _ _ _
Contributed Capital
Treasury Stock
Shares distributed
Shareowner plans 22 1 _ _ 23 1
Verizon - Shareholders’ Equity Balance at end of year (11,456) (353) (5,213) (142) (4,554) (115)
QUESTION TWO
Common Stock
Shares
2005
Amount Shares
2004
Amount Shares
2003
Amount
Shares issued
Employee plans
2,774, 865
_
$277
_
2,77,314
2,501
$277
_
2,751,650
20,664
$275
Shareowner plans _ _ 50 _ _ _
Shares retired _ _ _ _ _ _
Contributed Capital
Treasury Stock
Shares distributed
Shareowner plans 22 1 _ _ 23 1
Verizon - Shareholders’ Equity Balance at end of year (11,456) (353) (5,213) (142) (4,554) (115)
QUESTION TWO
QUESTION
(dollars in millions, except per share amounts, and shares in thousands)
Common Stock
Shares issued
Employee plans
2,774, 865
_
$277
_
2,77,314
2,501
$277
_
2,751,650
20,664
$275
Shareowner plans _ _ 50 _ _ _
Shares retired _ _ _ _ _ _
Contributed Capital
Treasury Stock
Shares distributed
Shareowner plans 22 1 _ _ 23 1
Verizon - Shareholders’ Equity Balance at end of year (11,456) (353) (5,213) (142) (4,554) (115)
QUESTION TWO
QUESTION
(dollars in millions, except per share amounts, and shares in thousands)
TWO
Common Stock
Balance at beginning of year 2,774, 865 $277 2,77,314 $277 2,751,650 $275
Shares issued
Shareowner plans _ _ 50 _ _ _
Shares retired _ _ _ _ _ _
Contributed Capital
Treasury Stock
Shares distributed
Shareowner plans 22 1 _ _ 23 1
Verizon - Shareholders’ Equity Balance at end of year (11,456) (353) (5,213) (142) (4,554) (115)
QUESTION TWO
Common Stock
Shares
2005
Amount Shares
2004
Amount Shares
2003
Amount
Shares issued
Employee plans
2,774, 865
_
$277
_
2,77,314
2,501
$277
_
2,751,650
20,664
$275
Shareowner plans _ _ 50 _ _ _
Shares retired _ _ _ _ _ _
Contributed Capital
Treasury Stock
Shares distributed
Shareowner plans 22 1 _ _ 23 1
SHAREOWNERS’ EQUITY
Treasury stock, at cost --- 1,193 and 1,138 shares, (22,118) (19,644)
respectively
TOTAL SHAREOWNERS’ EQUITY 16,920 16,355
Coca-Cola - Shareholders’ Equity
QUESTION THREE
SHAREOWNERS’ EQUITY
Treasury stock, at cost --- 1,193 and 1,138 shares, (22,118) (19,644)
respectively
TOTAL SHAREOWNERS’ EQUITY 16,920 16,355
Coca-Cola - Shareholders’ Equity
QUESTION THREE
SHAREOWNERS’ EQUITY
Treasury stock, at cost --- 1,193 and 1,138 shares, (22,118) (19,644)
respectively
TOTAL SHAREOWNERS’ EQUITY 16,920 16,355
Coca-Cola - Shareholders’ Equity
QUESTION THREE
2. Common Stock
a. What is the par value of each share of
common stock issued?
$0.25/share (see Consolidated Balance Sheet)
SHAREOWNERS’ EQUITY
Treasury stock, at cost --- 1,193 and 1,138 shares, (22,118) (19,644)
respectively
TOTAL SHAREOWNERS’ EQUITY 16,920 16,355
Coca-Cola - Shareholders’ Equity
QUESTION THREE
SHAREOWNERS’ EQUITY
Treasury stock, at cost --- 1,193 and 1,138 shares, (22,118) (19,644)
respectively
TOTAL SHAREOWNERS’ EQUITY 16,920 16,355
Coca-Cola - Shareholders’ Equity
QUESTION THREE
SHAREOWNERS’ EQUITY
Treasury stock, at cost --- 1,193 and 1,138 shares, (22,118) (19,644)
respectively
TOTAL SHAREOWNERS’ EQUITY 16,920 16,355
Coca-Cola - Shareholders’ Equity
QUESTION THREE
3. Transactions related to Shareholders’ Equity
a. record the declaration and payment of dividends
in 2006.
Cash Dividend Payable Retained Earnings
Declaration $2,911 ($2,911)
Payment ($2,911) ($2,911)
See Dividends declared in Consolidated Statement of
Shareholders Equity
See Cash in Consolidated Statement of Cash Flows (financing
section)
Coca-Cola - Shareholders’ Equity
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREOWNERS’ EQUITY
Year Ended December 31, 2006 2005 2004
THREE
Balance at beginning of year 2,369 2,409 2,442
COMMON STOCK
CAPITAL SURPLUS
Tax benefit from employees’ stock option and restricted stock plans 3 11 13
REINVESTED EARNINGS
Dividends (per share - $1.24, $1.12 and $1.00 in 2006, 2005 and 2004, (2,911) (2,678) (2,429)
respectively)
Coca-Cola - Shareholders’ Equity Balance at end of year 33,468 31,299 29,105
QUESTION THREE
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
Year Ended December 31, 2006 2005 2004
(In millions)
FINANCING ACTIVITIES