(a) How many new shares of common stock did 3M issue during fiscal 2019? new shares issued (b) What journal entry did 3M make to record its stock issuance in fiscal 2019? (c) On average, how much cash did 3M receive for each new share of stock issued in fiscal 2019? Round your answer to the nearest dollar. per new share issued
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
![(a) How many new shares of common stock did 3M issue during fiscal 2019?
new shares issued
(b) What journal entry did 3M make to record its stock issuance in fiscal 2019?
(c) On average, how much cash did 3M receive for each new share of stock issued in fiscal 2019? Round
your answer to the nearest dollar.
per new share issued
(d) How many shares of its stock did 3M repurchase during fiscal 2019?
shares repurchased
(e) What journal entry did 3M make to record its stock repurchases in fiscal 2019?
(f) On average, how much cash did 3M pay per share for stock repurchased during 2019? Round your
answer to the nearest dollar.
$
per share repurchased
(g) What journal entry did 3M make to record stock options granted to employees in fiscal 2019?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F15f858f5-f196-4626-9d20-941cf187d326%2F2f046852-12fe-489d-a3c7-a03068dce29e%2Fafu9a5_processed.png&w=3840&q=75)
![3M
CONSOLIDATED BALANCE SHEETS
(In millions)
ASSETS
Dec 31, 2019
Dec 31, 2018
Cash & cash equivalents
$ 2,353
$ 2,853
Accounts receivable, net allowances of $161 and $95
4,791
5,020
Inventories
4,134
4,366
Prepaid expenses
704
741
Other current assets
989
729
Total current assets
12,971
13,709
Property, plant and equipment, net
9,333
8,738
erating lease right-of-use assets
858
Goodwill
13,444
10,051
Other intangible assets, net
6,379
2,657
Other long-term assets
1,674
1,345
Total assets
$ 44,659
$36,500
LIABILITIES & STOCKHOLDERS’ EQUITY
Short-term borrowings and current portion of long-term debt
Accounts payable
$ 2,795
$ 1,211
2,228
2,266
Accrued salaries
702
749
Accrued income taxes
194
243
Current operating lease liabilities
247
Other current liabilities
3,056
2,775
Total current liabilities
9,222
7,244
Long-term debt
Pension and postretirement benefits
17,518
13,411
3,911
2,987
Long-term operating lease liabilities
Other long-term liabilities
б07
3,275
3,010
Total liabilities
34,533
26,652
Common stock, $0.01 par value; 3,000.0 million shares authorized; 944.0 million
shares issued at 12/31/19 and 937.8 million shares issued at 12/31/18
9.
9.
Additional paid in capital
5,907
5,082
(29,849)
Treasury stock, 368.8 million shares at 12/31/19 and 361.2 million shares at 12/31/18
Retained earnings
(28,442)
42,135
40,869
Accumulated other comprehensive loss
(8,076)
(7,670)
Total stockholders' equity
10,126
9,848
Total liabilities & stockholders' equity
$ 44,659
$ 36,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F15f858f5-f196-4626-9d20-941cf187d326%2F2f046852-12fe-489d-a3c7-a03068dce29e%2F3gfi2ri_processed.png&w=3840&q=75)
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