In part B, you will analyze the stockholders equity section of the balance sheet to understand contributed capital transactions.

Part B Utilize the Consolidated Balance Sheet for Pfizer from the 2016 10K

Required:

1. Explain the derivation of the $461M in the common stock account.

2. Using the December 31, 2016 balances, at what average issue price were the Pfizer common shares issued?

3. At what average cost was the Pfizer treasury stock held at as of December 31, 2016?

4. What is your estimate of the average cost of the Pfizer treasury stock purchased during 2016?

5. How many common shares are outstanding as of December 31, 2016?

Consolidated Balance Sheets Pfizer Inc. and Subsidiary Companies As of December 31, 2015 2016 (MILLIONS, EXCEPT PREFERRED STOCK ISSUED AND PER COMMON SHARE DATA) Assets 2,595 3,641 Cash and cash equivalents 15,255 19,649 Short-term investments 8,225 8,176 Trade accounts receivable, less allowance for doubtful accounts: 2016-$609; 2015-$384 6,783 7,513 Inventories 3,041 2,862 Current tax assets 2,249 2,154 Other current assets 801 Assets held for sale 38,949 43,804 Total current assets 7,116 15,999 Long-term investments 13,318 13,766 Property, plant and equipment, less accumulated depreciation 40,356 52,648 Identifiable intangible assets, less accumulated amortization 54,449 48,242 Goodwill 1,812 1,794 Noncurrent deferred tax assets and other noncurrent tax assets 3,323 3,420 Other noncurrent assets 171,615 167,381 Total assets Liabilities and Equity 10,159 10,688 Short-term borrowings, including current portion of long-term debt: 2016--$4,225; 2015-$3,719 4,536 3,620 Trade accounts payable 1,852 1,944 Dividends payable 437 418 Income taxes payable 2,487 2,359 Accrued compensation and related items 11,023 10,990 Other current liabilities 29,399 31,115 Total current liabilities 28,740 31,398 Long-term debt 6,406 6,310 Pension benefit obligations, net 1,766 1,809 Postretirement benefit obligations, net 30,753 26,877 Noncurrent deferred tax liabilities 4,000 3,992 Other taxes payable 5,257 6,337 Other noncurrent llabilities 102,384 111,776 Total liabilities Commitments and Contingencies 26 Preferred stock, no par value, at stated value; 27 shares authorized; issued: 2016-597; 2015-649 461 459 Common stock, $0.05 par value; 12,000 shares authorized; issued: 2016-9,230; 2015-9,178 Additional paid-in capital 82,685 81,016 (79,252) (84,364) Treasury stock, shares at cost: 2016-3,160; 2015-3,003 71,774 71,993 Retained eamings (11,036) (9,522) Accumulated other comprehensive loss 64,720 59,544 Total Pfizer Inc. shareholders' equity 278 296 Equity attributable to noncontrolling interests 59,840 64,998 Total equity 167,381 Total liabilities and equity Amounts may not add due to rounding $ 171,615 24