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Business Analysis and Financial Reporting

What is shareholder's equity, how is it calculated, and where and how is it reported? What is comprehensive income and how does it influence equity? What happens to shareholder's equity when the firm issues more shares or buys back shares in the open market? What are retained earnings and how and where are they accounted? What are corporate dividends and how are they distributed and accounted for? Provide a discussion of all potential scenarios and the relevant accounting requirements.

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Shareholders equity is the amount of money owned by the common shareholders. Shareholders equity consists of amount paid by the shareholders (paid in capital) + retained earnings-treasury stock. Shareholders equity can also be computed by subtracting total liabilities from the total assets. It is reported in the liabilities side of the balance sheet.

Comprehensive income consists of the net income earned by the company, unrealized gain/loss from holding of ...

Solution Summary

The solution provides a business analysis and financial reporting.