The following information was taken from the 2008 statement of Shareholders' equity of The Home Depot (dollars

Question:

The following information was taken from the 2008 statement of Shareholders' equity of The Home Depot (dollars in millions)

Common Stock Additional Retained Treasury Stock Paid-In Capital Earnings Beginning balance Net income Shares issued unde

(a) What portion of net income was paid out in dividends during the year?
(b) Explain how issuance of shares affected the basic accounting equation.
(c) Explain how the purchase of treasury stock affected the basic accounting equation.
(d) How much cash was distributed to the company's shareholders during the year?
(e) What was the balance sheet value of the retained earnings account at the end of the year?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...