At the beginning of 2017, Southwest Airlines had the following amounts on their balance sheet: Amounts in
Question:
At the beginning of 2017, Southwest Airlines had the following amounts on their balance sheet:
Amounts in millions
Common Stock 10
APIC 2,690
Retained Earnings 9,165
Accumulated other comprehensive Income 265
During 2017, Southwest Airlines has net income of $478 million without considering any gains or losses from the sale of securities. During 2017, Southwest has a pension loss of $37 million and a currency translation gain of $16 million. They also sold debt securities held for sale that had an original cost of $46 million for $36 million. At the beginning of 2017, the valuation allowance for securities sold was a credit of $5 million. Southwest also paid dividends of $89 million and sold 10 million shares of $.10 par stock for $320 million in cash. Southwest’s tax rate is 30%
Requirements:
a). Prepare a statement of comprehensive income for 2017.
b). Prepare a statement of changes in stockholders equity for 2017
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach