Student Solution

-->

"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

1 University

1 Course

1 Subject

Week 4 SEC 10-K Statement of Stockholder's Equity

Week 4 SEC 10-K Statement of Stockholder's Equity

Q Respond to one or more question(s) from each of the three categories below. Category: Capital stock 1. Describe the composition of your corporation's contributed capital [Hint: contributed capital includes common and preferred stock plus any paid in capital in excess of par (or stated value)]. 2. Describe any other accounts reported in the Stockholder's Equity section of the Balance Sheet. 3. Discuss Treasury Stock transactions during the current year, if any. Category: Retained Earnings 1. Use the following equation and show how the Retained Earnings account has changed during the year. [Hint: the beginning balance of Retained Earnings is also equal to the ending balance of Retained Earnings in the prior year.] Retained earnings, beginning balance + Net Income - Dividends = Retained earnings, ending balance [Note: if the Statement of Stockholder's Equity shows other accounts in the computation of Retained Earnings, please ask the professor for guidance] Category: Analysis 1. Calculate the following ratios for the most current year, and interpret/comment on what those results of your ratio analysis indicate about the financial aspect measured. Show your calculations. a. Return on stockholder's equity b. Earnings per share

View Related Questions

Solution Preview

Contributed capital refers to the cash or other assets that people have given to have the stocks of a company. The common stock was 40.25 million while the additional paid-in capital was 22290 million. Adding up the two, Ford Motor’s contributed capital for 2020 was 22330.25 million.