Black Enterprises reported the following ($ in 000s) as of December 31, 2009. All accounts have normal balances.
Common stock $2,000
Paid-in capital-stock options $1,000
Treasury stock at cost $400
Paid-in capital-excess of par $30,000
16. (1) What ($ in 000s) was shareholders' equity as of December 31, 2010?
All the account balances given are part of the total shareholders' equity. For the response to the question, they are grouped together with explanations as needed.
The opening balances are: - 3000 ...
The solution defines each of the amounts with its normal balance within shareholder equity. Explanations are provided for each change based on current year data. The ending balance of total shareholders' equity at 12-31-2010 is calculated.
Balance Sheet, Income Statement and Financial Ratio Analysis: Caribou Coffee and Fazer Group
Review of the income statement and balance sheet and compute the ratios for Caribou Coffee and Fazer Group.
Gross profit margin
Net profit margin
Return on stockholders' equity
What components of stockholders' equity do each of the companies disclose?
Do the companies have preferred stock shares outstanding? If so, what special features do these shares contain?
Do any of the companies report treasury shares? If so, do the companies disclose the reason for reacquiring the shares?
What are the basic and diluted earnings per share for each company?
Have the companies reported any discontinued operations for the last year?
Do the companies disclose any stock compensation plans? If so, are they reporting such plans under the fair value or intrinsic value methods? What was the value of compensation expense measured for any outstanding stock option plans?
What type of information do you find in footnotes to the financial statements?
Do you find the balance sheet, income statement or other measures such as ratios the most informative?
Comment of the advantages and disadvantages of using ratios for analysis.