Analyzing and Computing Average Issue Price and Treasury Stock Cost Assume this is the stockholders' equity section from the Campbell Soup Company balance sheet. Shareholders' Equity (millions, except per share amounts) August 3, 2008 July 29, 2007 Preferred stock: authorized 40 shares; non issued $ -- $ -- Capital stock, $0.0375 par value; authorized 560 shares; issued 532 shares 20 20 Additional paid-in capital 337 331 Earnings retained in the business 7,902 7,032 Capital stock in treasury, 186 shares in 2008 and 163 shares in 2007, at cost (6,812) (6,015) Accumulated other comprehensive loss (136) (123) Total shareholders' equity $ 1,311 $ 1,245 Assume Campbell Soup Company also reports the following statement of stockholders' equity. (Millions, except per share amounts) Capital Stock Additional Paid-in Capital Earnings Retained in the Business Accumulated Other Comprehensive Income (Loss) Total share-owners' Equity Issued In Treasury Shares Amount Shares Amount Balance at July 29, 2007 532 $ 20 (163) $ (6,015) $ 331 $ 7,032 $ (123) $ 1,245 Net earnings 1,185 1,185 Other comprehensive income (loss) (13) (13) Impact on adoption of FIN 48 Note 10) (8) (8) Dividends ($0.88 per share) (307) (307) Treasury stock purchased (26) (903) (903) Treasury stock issued under managementincentive and stock options plan 3 106 6 112 Balance at August 3, 2008 532 $ 20 (186) $ (6,812) $ 337 $ 7,902 $ (136) $ 1,311 (a) Campbell Soup Company reports $20 million in its Common Stock account. Which of the following statements best describes the manner in which this number is computed? The computation uses the number of outstanding shares multiplied by the market price of the stock. The computation uses the number of issued shares multiplied by the par value of the stock. The computation uses the number of issued shares multiplied by the market value of the stock. The computation uses the number of outstanding shares multiplied by the par value of the stock. (b) At what average price were the Campbell Soup shares issued? (Round your answer to two decimal places.) $Answer 0.62 (c) Reconcile the beginning and ending balances of retained earnings. (Enter any deductions as negative numbers.) ($ millions) Retained earnings, July 29, 2007 Answer 0 Net earnings Answer 0 Dividends Answer 0 Miscellaneous Answer 0 Retained earnings, August 3, 2008 Answer 0