金融理论英文版课件ppt.ppt

All but one of the following is reported in a retained earnings statement. The exception is: cash and stock dividends. net income and net loss. some disposals of treasury stock below cost. sales of treasury stock above cost. Question Retained Earnings Statement SO 6 Identify the items reported in a retained earnings statement. SO 7 Statement Presentation and Analysis Illustration 11-26 Analysis Net Income Available to Common Stockholders Return on Common Stockholders’ Equity = Average Common Stockholders’ Equity SO 7 Prepare and analyze a comprehensive stockholders’ equity section. Statement Analysis and Presentation This ratio shows how many dollars of net income the company earned for each dollar invested by the stockholders. Analysis SO 7 Prepare and analyze a comprehensive stockholders’ equity section. Statement Analysis and Presentation Illustration: Kellogg Company’s beginning-of-the-year and end-of-the-year common stockholders’ equity were $2,526 and $1,448 million, respectively. Its net income was $1,148 million, and no preferred stock was outstanding. The return on common stockholders’ equity ratio is computed as follows. Solution on notes page Illustration 11-28 Home-equity loans are now difficult to get. The reasons are that banks are not making the loans, and sinking home prices give homeowners less equity to borrow against. Four major reasons why many individuals employ home-equity loans are: (1) to invest, (2) to get a tax deduction, (3) to defer other debt, or (4) to buy from a wish list. Home-Equity Loans Good Bye and Good Luck! Solutions to problems next End of Chapter 11 (a) Jan. 10 Cash (80,000 X $4) 320,000 Common Stock (80,000 X $3) 240,000 Paid-in Capital in Excess of ??Stated Value—Common ??Stock (80,000 X $1) ?80,000 Mar. ?1 Cash (5,000 X $105) 525,000 Preferred Stock (5,000 X $100) 500,000 Paid-in Capital in Excess of ??Par Value—Preferred Stock ??(5,000 X $5) ?25,0