9th Edition

ISBN: 9781260216141

Author: SPICELAND

Publisher: MCG CUSTOM

Concept explainers

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 fro…

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 …

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…

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 expect…

Videos

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 18, Problem 18.16BE

Chapter 18, Problem 18.2E

Students have asked these similar questions

Problem 18-5 (Algo) Shareholders' equity transactions; statement of shareholders' equity; financial statement effects [LO18-6, 18-7, 18-8] Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation during the period 2024-2026. At December 31, 2023, the corporation's accounts included: Common stock, 112 million shares at $1 par Paid-in capital-excess of par Retained earnings ($ in thousands) $ 112,000 672,000 910,000 a. November 1, 2024, the board of directors declared a cash dividend of $0.70 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. b. On March 1, 2025, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that Branch-Rickie was holding as an investment. The bonds had a fair value of $2.8 million, but were purchased two years previously for $2.4 million. Because they were intended to be held to maturity, the bonds had not been…

p32

Problem 19-9 (Static) EPS from statement of retained earnings [LO19-4, 19-5, 19-6] Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021. RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31 2021 2020 2019 Balance at beginning of year Net income (loss) $6,794, 292 3,308,700 $5,464,052 2,240,900 $5,624,552 (160,500) Deductions: Stock dividend (34,900 shares) Common shares retired, September 30 (110,000 shares) Common stock cash dividends 242,000 212,660 698,000 889,950 Balance at end of year $8,971,042 $6,794, 292 $5,464,052 At December 31, 2018, paid-in capital consisted of the following: $1,855,000 Common stock, 1,855,000 shares at $1 par Paid in capital-excess of par 7,420,000 No preferred stock or potential common shares were outstanding during any of the periods shown. Required: Compute Renn-Dever's earnings per share as it would have appeared in…

Chapter 18 Solutions

INTERMEDIATE ACCOUNTING(LL)-W/CONNECT

Ch. 18 - Identify and briefly describe the two primary...Ch. 18 - Prob. 18.2Q Ch. 18 - Prob. 18.3Q Ch. 18 - Prob. 18.4Q Ch. 18 - Prob. 18.5Q Ch. 18 - Prob. 18.6Q Ch. 18 - Prob. 18.7Q Ch. 18 - What is meant by a shareholders preemptive right?Ch. 18 - Terminology varies in the way companies...Ch. 18 - Most preferred shares are cumulative. Explain what...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.