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9. The following is selected financial information for Walkmart, Inc. for its ye

ID: 2532908 • Letter: 9

Question

9. The following is selected financial information for Walkmart, Inc. for its year ending January 31, 2013:

Retained earnings, January 31, 2012 …………....

$ 65,285

Common stock, January 31, 2012 ………………..

5,000

Dividends ………………………………………..…..

3,746

Net income ………………………………………..…

14,335

Stock issuances ………………………………….....

600

Prepare a statement of stockholders' equity for 2013 for Walkmart. All amounts are in millions.

Retained earnings, January 31, 2012 …………....

$ 65,285

Common stock, January 31, 2012 ………………..

5,000

Dividends ………………………………………..…..

3,746

Net income ………………………………………..…

14,335

Stock issuances ………………………………….....

600

Explanation / Answer

Statement of Stockholders' equity Common Stock ($5,000+$600) $    5,600 Retained earnings Beginning balance $ 65,285 Add: Current year net income $ 14,335 Less: Dividends $ (3,746) Ending Retained earnings $ 75,874 Total stockholders' equity $ 81,474