Comprehensive Analysis for Deer and Co (One question with separate portions which need to be answered for the entire inferential analysis)

What were dividends declared by Deer and Co for the year ended December 31, 2021?

2. In December 2021, Deer and Co declared a bonus for its executives. This amount is an expense in 2021, even though it will not be paid until 2022. For tax purposes, however, the bonus will not be a tax deduction until it is paid. All deferred tax items at Deer and Co are recorded net, as part of “deferred income taxes” on the balance sheet. Taken in isolation, did the 2021 bonus increase, decrease, or have no impact on the “deferred income taxes” account on Deer and Co’s December 31, 2021 balance sheet. Select the correct choice (can only be one choice).

Increase OR Neither OR Decrease

3. During the year ended December 31, 2021, Deer and Co repurchased treasury stock and then reissued some of those shares. Assume that Deer and Co reissued 3.6 million shares for a total of $223 in cash and recorded an economic loss of $68 on the issuance of these shares. [Note that both the $223 and the $68 are totals, in millions, NOT per share amounts].

a) How many shares of treasury stock did Deer and Co repurchase during the year ended December 31, 2021? [round your answer to the nearest hundred thousand shares]

b) What was the average price paid by Deer and Co for the shares repurchased during the year ended December 31, 2021? [give your answer to the nearest hundredth decimal place (nearest penny in USD) – i.e., $4.86 per share, rather than $5 per share]

Income Statement

Balance Sheet

SE

  
 

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Consolidated Results of Operations for the Years Ended December 31 (Dollars in millions except per share data) 2021 2020 Sales and revenues: Sales of Machinery, Energy & Transportation Revenues of Financial Products Total sales and revenues Operating costs: Cost of goods sold Selling, general and administrative expenses Research and development expenses Interest expense of Financial Products Other operating (income) expenses Total operating costs Operating profit Interest expense excluding Financial Products Other income (expense) Consolidated profit before taxes Provision (benefit) for income taxes Profit of consolidated companies Equity in profit (loss) of unconsolidated affiliated companies $ 48,188 2,783 50,971 35,513 5,365 1,686 455 1,074 44,093 6,878 488 1,814 8,204 1,742 6,462 31 6,493 Profit of consolidated and affiliated companies Less: Profit (loss) attributable to noncontrolling interests Profit (*) (*) Profit attributable to common shareholders See accompanying notes to Consolidated Financial Statements S 6.489 $ 39,022 2,726 41,748 29,082 4,642 1,415 589 1,467 37,195 4,553 514 (44) 3,995 1,006 2,989 14 3,003 5 $ 2.998 2019 $ 50,755 3,045 53,800 36,630 5,162 1,693 754 1,271 45,510 8,290 421 (57) 7,812 1,746 6,066 28 6,094 1 $ 6.093 Consolidated Results of Operations for the Years Ended December 31 (Dollars in millions except per share data) 2021 2020 Sales and revenues: Sales of Machinery, Energy & Transportation Revenues of Financial Products Total sales and revenues Operating costs: Cost of goods sold Selling, general and administrative expenses Research and development expenses Interest expense of Financial Products Other operating (income) expenses Total operating costs Operating profit Interest expense excluding Financial Products Other income (expense) Consolidated profit before taxes Provision (benefit) for income taxes Profit of consolidated companies Equity in profit (loss) of unconsolidated affiliated companies $ 48,188 2,783 50,971 35,513 5,365 1,686 455 1,074 44,093 6,878 488 1,814 8,204 1,742 6,462 31 6,493 Profit of consolidated and affiliated companies Less: Profit (loss) attributable to noncontrolling interests Profit (*) (*) Profit attributable to common shareholders See accompanying notes to Consolidated Financial Statements S 6.489 $ 39,022 2,726 41,748 29,082 4,642 1,415 589 1,467 37,195 4,553 514 (44) 3,995 1,006 2,989 14 3,003 5 $ 2.998 2019 $ 50,755 3,045 53,800 36,630 5,162 1,693 754 1,271 45,510 8,290 421 (57) 7,812 1,746 6,066 28 6,094 1 $ 6.093

Answer rating: 100% (QA)

Answer 1 Dividend declared by Deer and Co for the year ended December 31 2021 can be seen as liabili... View the full answer