Look at one of the country’s leading income tax software company – Intuit, paren

Question

Look at one of the country’s leading income tax software company – Intuit, parent company of TurboTax. Above is a 2 year snapshot of Intuit’s Statement of Stockholders’ Equity. Using this information, answer the following questions:

1. Has Intuit been a profitable company in the 2 years shown above (FY 2015 and 2016)? Tell us what data supports your response.

2. Does Intuit pay a dividend? If so, what is the impact on Stockholders’ Equity?

3. What is Treasury Stock? What has been the impact on Stockholders’ Equity in these 2 years for Intuit’s treasury stock transactions?

Tables of Contents INTUIT INC CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Accumulated Other Common Stock Additional Total Paid-In Shars Amount Capital Treasury Comprehensive Retained Stockholders Dollars in millions, shares in thousands) Balance at July 31, 2014 Comprehensive income Issuance of stock under employee stock plans net of shares withheld for employee taxes Stock repurchases under stock repurchase programs Dividends and dividend rights declared (S1.00 per Stock Earnings Equity Oss 284,950 $ 3 S 3,558 $ (6,430) S (2) $ 5,949 $ 3,078 337 (28) 365 6,565 107 107 (13,809) (1,245) (1,245) share) Tax benefit from share-based compensation plans Share-based compensation expense Balance at July 31, 2015 Comprehensive income Issuance of stock under employee stock plans net of shares withheld for employee taxes Stock repurchases under stock repurchase programs Dividends and dividend rights declared ($1.20 per share) Tax benefit from share-based compensation plans Share-based compensation expense Balance at July 31, 2016 (287) (287) 85 257 2,332 977 257 277,706 3 4,007 (7,675) (30) 6,027 979 4,963 89 89 (24,816) (2,264) (2,264) (319) (319) 59 287 4,442 287 257,853 3 (9,939) (32) 6,687 1,161

Explanation / Answer

1. Has Intuit been a profitable company in the 2 years shown above (FY 2015 and 2016)? Tell us what data supports your response.

Yes. The comprehencive Income for the year 2014-15 was $ 337 and for the year 2015-16 it was $ 997

2. Does Intuit pay a dividend? If so, what is the impact on Stockholders’ Equity?.

Yes. Dividend for the year 2014-15 was $ 287 and for the year 2015-16 it was $ 319. The Stockholders’ Equity is reduced by the amount of Dividend declared in 2014-15 & year 2015-16 by $ 287 and $ 319 respectively.

3. What is Treasury Stock? What has been the impact on Stockholders’ Equity in these 2 years for Intuit’s treasury stock transactions?

Treasury Stock is Stock repurchases under stock repurchase program. Stock repurchase for the year 2014-15 was $ 1,245 and for the year 2015-16 it was $ 2,264

The Stockholders’ Equity is reduced by the amount of Stock repurchased in 2014-15 & year 2015-16 by $1,245 and $ 2,264 respectively.

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