. Following is the stockholders\' equity section of the 2016 Kellogg Company bal

Question

. Following is the stockholders' equity section of the 2016 Kellogg Company balance sheet. (S in millions, except par value): Common stock, $0.25 par value, 1,000,000,000 shares authorized, issued: 420,472,901 shares in 2016 and 420,315,589 shares in 2015 105 S 105 745 Capital in excess of par value 571 6.597 Treasury stock at cost, 69,403,567 shares in 2016 and 3.997 3.943 (1.575 (1.376 1910 2.128 16 10 $1.926 $2.138 70,291,514 shares in 2015 other otal Kello9g oncontrolling interests Total equty Required: a. How many common shares are issued at year end 2016? b. At what average price was the common stock issued as of 2016? e How many common shares are outstanding at year end 2016? d How many shares of treasury stock (net) did Kellogg acquire or retire or sell during 2016?

Explanation / Answer

A)Common share issued at 2016 :420,472,901 shares

B)Average price = [par value +paid in capital ] /shares issued

              = [105,000,000+806,000,000] /420,472,901

               = 21.67 per share

C)Common shares outstanding=issued -treasury stock

             = 420472901-69403567

              = 351,069,334 shares

D)Shares (acuired)/ retire during the 2016 = beginning treasury stock -ending treasury stock

            = 70291514-69403567

            = 887947 shares

e)

Average price of treasury stock = 3997000000/69403567

               = $ 57.59 per share

f)Accumulated comprehensive income is a income which is not reported in income statement and which comprises of unrealized gain or losses

1)change in fair value of investment

2)changes in currency translation adjustment

3)retirement plans

2)preferred dividend : 25000*120*6% = 180000

2014 2015 2016 2017 past year preferred dividend 0 82500 0 current year preferred dividend 97500 180000 180000 0 common stock diviidend 0 618000-82500-180000=262500 454500-180000=274500 0 Total 97500 618000 454500 0 **preferred dividend in arrear 180000-97500= 82500 0 0 180000

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