(Module 8 Question 1) Please answer all questions with a red X next to them. Thank you!

QUESTION 1 Partially correct Mark 0.33 out of 1.00 Flag question 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 582 shares Additional paid-in capital Earnings retained in the business Capital stock in treasury, 186 shares in 2008 and 163 shares in 2007, at cost Accumulated other comprehensive loss Total shareholders equity 7.930 (6,812) (136) $1,341 331 7,112 (6,015) (123) $1,327 Assume Campbell Soup Company also reports the following statement of stockholders' equity. Capital Stock Earnings Accumulated Total Additional Retained Other (Millions, except per share amounts) share- Paid-in Capital Issued In Treasury Comprehensive the Income (Loss) Equity Shares Amount Shares Amount Business 582 $22 (163) $(6,015) $331 7,112 S 123 1,327 Balance at july 29, 2007 Comprehensive income (loss) Net earnings 1,175 1,175 Foreign currency translation adjustments, net of tax 112 112 Cash-flow hedges, net of tax Pension and postretirement benefits, net of tax (136) (136) (13) 1.162 Other comprehensive loss (13) Total comprehensive income Impact on adoption of FIN 48 Note 10) (10) (10) (347) (903) Dividends ($0.88 per share) (347) Treasury stock purchased (26) (903) Treasury stock issued under managemen incentive and stock options plan 106 112 Balance at August 3, 2008 582 $22 (186) (6,812) $337 7,930 S (136) $1,341 (a) Campbell Soup Company reports $22 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 issued shares multiplied by the par value of the stock. OThe computation uses the number of issued shares multiplied by the market value of the stock. OThe computation uses the number of outstanding shares multiplied by the market price of the stock. OThe 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.) (c) Reconcile the beginning and ending balances of retained earnings (Enter any deductions as a negative numbers.) (S millions) Retained earnings, July 29, 2007 Net earnings Dividends Miscellaneous Retained earnings, August 3, 2008