Use the following equation and show how the Retained Earnings account has change
ID: 2815631 • Letter: U
Question
Use the following equation and show how the Retained Earnings account has changed over the past two years.
Retained earnings, beginning balance
+ Prior period adjustments
= Retained earnings, adjusted balance
+ Net Income
- Retirement of Treasury stock
-Dividends
= Retained earnings, ending balance
The Company I chosen is Kroger.
Sorry but Chegg say I can't provide the URL to the 10-K
THE KROGER CO.
CONSOLIDATED BALANCE SHEETS
February 3,
January 28,
(In millions, except par amounts)
2018
2017
ASSETS
Current assets
Cash and temporary cash investments
$
347
$
322
Store deposits in-transit
1,161
910
Receivables
1,637
1,649
FIFO inventory
7,781
7,852
LIFO reserve
(1,248)
(1,291)
Assets held for sale
604
—
Prepaid and other current assets
835
898
Total current assets
11,117
10,340
Property, plant and equipment, net
21,071
21,016
Intangibles, net
1,100
1,153
Goodwill
2,925
3,031
Other assets
984
965
Total Assets
$
37,197
$
36,505
LIABILITIES
Current liabilities
Current portion of long-term debt including obligations under capital leases and financing obligations
$
3,560
$
2,252
Trade accounts payable
5,858
5,818
Accrued salaries and wages
1,099
1,234
Deferred income taxes
—
251
Liabilities held for sale
259
—
Other current liabilities
3,421
3,305
Total current liabilities
14,197
12,860
Long-term debt including obligations under capital leases and financing obligations
12,029
11,825
Deferred income taxes
1,568
1,927
Pension and postretirement benefit obligations
792
1,524
Other long-term liabilities
1,706
1,659
Total Liabilities
30,292
29,795
Commitments and contingencies (see Note 13)
SHAREHOLDERS’ EQUITY
Preferred shares, $100 per share, 5 shares authorized and unissued
—
—
Common shares, $1 par per share, 2,000 shares authorized; 1,918 shares issued in 2017 and 2016
1,918
1,918
Additional paid-in capital
3,161
3,070
Accumulated other comprehensive loss
(471)
(715)
Accumulated earnings
17,007
15,543
Common shares in treasury, at cost, 1,048 shares in 2017 and 994 shares in 2016
(14,684)
(13,118)
Total Shareholders’ Equity - The Kroger Co.
6,931
6,698
Noncontrolling interests
(26)
12
Total Equity
6,905
6,710
Total Liabilities and Equity
$
37,197
$
36,505
February 3,
January 28,
(In millions, except par amounts)
2018
2017
ASSETS
Current assets
Cash and temporary cash investments
$
347
$
322
Store deposits in-transit
1,161
910
Receivables
1,637
1,649
FIFO inventory
7,781
7,852
LIFO reserve
(1,248)
(1,291)
Assets held for sale
604
—
Prepaid and other current assets
835
898
Total current assets
11,117
10,340
Property, plant and equipment, net
21,071
21,016
Intangibles, net
1,100
1,153
Goodwill
2,925
3,031
Other assets
984
965
Total Assets
$
37,197
$
36,505
LIABILITIES
Current liabilities
Current portion of long-term debt including obligations under capital leases and financing obligations
$
3,560
$
2,252
Trade accounts payable
5,858
5,818
Accrued salaries and wages
1,099
1,234
Deferred income taxes
—
251
Liabilities held for sale
259
—
Other current liabilities
3,421
3,305
Total current liabilities
14,197
12,860
Long-term debt including obligations under capital leases and financing obligations
12,029
11,825
Deferred income taxes
1,568
1,927
Pension and postretirement benefit obligations
792
1,524
Other long-term liabilities
1,706
1,659
Total Liabilities
30,292
29,795
Commitments and contingencies (see Note 13)
SHAREHOLDERS’ EQUITY
Preferred shares, $100 per share, 5 shares authorized and unissued
—
—
Common shares, $1 par per share, 2,000 shares authorized; 1,918 shares issued in 2017 and 2016
1,918
1,918
Additional paid-in capital
3,161
3,070
Accumulated other comprehensive loss
(471)
(715)
Accumulated earnings
17,007
15,543
Common shares in treasury, at cost, 1,048 shares in 2017 and 994 shares in 2016
(14,684)
(13,118)
Total Shareholders’ Equity - The Kroger Co.
6,931
6,698
Noncontrolling interests
(26)
12
Total Equity
6,905
6,710
Total Liabilities and Equity
$
37,197
$
36,505
Explanation / Answer
Particulars 2017 2018 Retained earnings beginning 14,011 15,543 Add: Prior period adjustments Retained earnings adjusted balance 14,011 15,543 Add:Net Income 1,975 1,907 Deduct: Retirement of treasury stock Deduct: Dividends (443) (443) Retained earnings Ending 15,543 17,007
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