COMM 211 Lecture Notes - Lecture 9: Retained Earnings, Issued Shares, Stock Split
2 Dec 2017
School
Department
Course
Professor
Document Summary
Balance at opening date: net earnings, other comprehensive loss, stock dividend, share repurchase, dividends declared per common stock. Shareholder"s equity: common shares, retained earnings, contributed surplus, accumulated oci. Retained earnings: undistributed income that remains invested in the business, sources of dividends. Contributed capital (or shares: the amount the shareholders have contributed to the company, common shares or preferred shares. Contributed surplus: from issuing shares in the amount in excess of par value, from repurchase and resale of previously issued shares, other transactions (ex. Accumulate other comprehensive income: cumulative changes in equity due to gains and losses not included in net income. Cash inflows: collections from customers, interest and dividends received. Cash outflows: payments to suppliers, payments to employees, payment of interest, payment of income tax. Dividends cannot be paid until preferred share dividends are paid. Claims on dissolution not guaranteed (after bondholders, creditors and preferred shareholders) The most preferred shares can expect to earn is a fixed dividends.
