STA ACTIVITY 5 Understand information provided by the Statement of Stockholder earrings Understand changes within contributed capital and retained Identify relationships among the IS, RE, and the BS. ACTIVIT Purpose Purpose PEPSICO (PEP) 2010 STATEMENT OF STOCKHOLDERS' EQUITY (Sin millions) Other Equity $(17.177) Total Stockholders Equity $ 16,804 4,273 6,320 Thes activ Contributed Capital $ 176 4,273 (3,041) (3.192) $ 21,164 Retained Earnings Beginning balance $ 33,805 Issuance of shares Net income 6,320 Dividends (3,041) Other transactions 6 (3.198) Ending balance $ 4,449 $ 37,090 $(20,375) The statement of stockholders' equity reports changes within the contributed capital, retained earning and other equity accounts during an accounting period. Contributed capital (CC) is increased when additional shares of stock are issued and decreased when those shares are retired. Retained earnings (RE is increased by net Income learnings) of the accounting period and decreased when earnings are Q1 Assets a a distributed as dividends to the stockholders. Earnings not distributed as dividends are reported" retained earnings Earnings is another word for (revenue / receivables / net income). Earnings of a corporation belong to the managers / stockholders). Earnings can either be distributed to the stockholders as (dividends / expenses / retained earnings) or kept in the business as (dividends / expenses/retained earnings) Q2 Income statement: Revenues - Expenses = net income Balance sheet: Stockholders' Equity = Contributed capital + Other Equity Statement of SE: Beg Retained Earnings + - Dividends = Q3 Net Income is computed on the (1S / SE / BS) and then transferred to the Statement of Stockholders' Equity to increase (CC / RE / Other SE). Ending retained earnings is reported on the Statement of Stockholders' Equity and then transferred to the (US / SE / BS). Circle whether the account is reported on the Income Statement (IS), Statement of Stockholders Equity (SE), or the Balance Sheet (BS). Note: Three amounts are reported on two statements. Contributed capital (S/SE/BS) (IS / SE / BS) b. Net income (IS / SE / BS) f. Dividends (IS / SE / B5) 8 d. Retained earnings (IS / SE / B5) (IS / SE / BS) h. Q5 Use PepsiCo's 2010 statement of stockholders' equity above to answer the following questions: Contributed capital reported at the end of the accounting period is $ which is the amount shareholders paid for (net income / dividends/Issued shares). million, b. Retained earnings increased by (net income dividends / Issued shares) of $ million and decreased by (net income / dividends / issued shares) of 04 e. a. Sales revenue Accounts receivable (IS/SE/BS) Wage expense Bonds payable (1S / SE / BS) C. a. C. million. When the company issues shares of stock, total stockholders' equity increases / decreases). When the company buys back shares of stock, total stockholders' equity increases decreases) STA ACTIVITY 5 Understand information provided by the Statement of Stockholder earrings Understand changes within contributed capital and retained Identify relationships among the IS, RE, and the BS. ACTIVIT Purpose Purpose PEPSICO (PEP) 2010 STATEMENT OF STOCKHOLDERS' EQUITY (Sin millions) Other Equity $(17.177) Total Stockholders Equity $ 16,804 4,273 6,320 Thes activ Contributed Capital $ 176 4,273 (3,041) (3.192) $ 21,164 Retained Earnings Beginning balance $ 33,805 Issuance of shares Net income 6,320 Dividends (3,041) Other transactions 6 (3.198) Ending balance $ 4,449 $ 37,090 $(20,375) The statement of stockholders' equity reports changes within the contributed capital, retained earning and other equity accounts during an accounting period. Contributed capital (CC) is increased when additional shares of stock are issued and decreased when those shares are retired. Retained earnings (RE is increased by net Income learnings) of the accounting period and decreased when earnings are Q1 Assets a a distributed as dividends to the stockholders. Earnings not distributed as dividends are reported" retained earnings Earnings is another word for (revenue / receivables / net income). Earnings of a corporation belong to the managers / stockholders). Earnings can either be distributed to the stockholders as (dividends / expenses / retained earnings) or kept in the business as (dividends / expenses/retained earnings) Q2 Income statement: Revenues - Expenses = net income Balance sheet: Stockholders' Equity = Contributed capital + Other Equity Statement of SE: Beg Retained Earnings + - Dividends = Q3 Net Income is computed on the (1S / SE / BS) and then transferred to the Statement of Stockholders' Equity to increase (CC / RE / Other SE). Ending retained earnings is reported on the Statement of Stockholders' Equity and then transferred to the (US / SE / BS). Circle whether the account is reported on the Income Statement (IS), Statement of Stockholders Equity (SE), or the Balance Sheet (BS). Note: Three amounts are reported on two statements. Contributed capital (S/SE/BS) (IS / SE / BS) b. Net income (IS / SE / BS) f. Dividends (IS / SE / B5) 8 d. Retained earnings (IS / SE / B5) (IS / SE / BS) h. Q5 Use PepsiCo's 2010 statement of stockholders' equity above to answer the following questions: Contributed capital reported at the end of the accounting period is $ which is the amount shareholders paid for (net income / dividends/Issued shares). million, b. Retained earnings increased by (net income dividends / Issued shares) of $ million and decreased by (net income / dividends / issued shares) of 04 e. a. Sales revenue Accounts receivable (IS/SE/BS) Wage expense Bonds payable (1S / SE / BS) C. a. C. million. When the company issues shares of stock, total stockholders' equity increases / decreases). When the company buys back shares of stock, total stockholders' equity increases decreases)