9th Edition

ISBN: 9781259722660

Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher: McGraw-Hill Education

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Textbook Question

Chapter 18, Problem 18.1E

Comprehensive income

• LO18–2

The following is from the 2018 annual report of Kaufman Chemicals, Inc.:

Chapter 18, Problem 18.1E, Comprehensive income LO182 The following is from the 2018 annual report of Kaufman Chemicals, Inc.:

Kaufman reports accumulated other comprehensive income in its balance sheet as a component of shareholders’ equity as follows:

($ in millions)	2018	2017
Shareholders’ equity:
Common stock	355	355
Additional paid-in capital	8,567	8,567
Retained earnings	6,544	5,988
Accumulated other comprehensive income	107	75
Total shareholders’ equity	$15,573	$14,985

Required:

1. What is comprehensive income and how does it differ from net income?

2. How is comprehensive income reported in a balance sheet?

3. Why is Kaufman’s 2018 balance sheet amount different from the 2018 amount reported in the disclosure note? Explain.

4. From the information provided, determine how Kaufman calculated the $107 million accumulated other comprehensive income in 2018.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Chapter 18, Problem 18.16BE

Chapter 18, Problem 18.2E

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Chapter 18 Solutions

Intermediate Accounting

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