Shareholder's Equity
Shareholder’s Equity
Samantha Partida
ACC 306
Ashley Harper
December 10, 2012
Shareholder’s equity, also known as stockholder’s equity, is essentially the amount of equity directly from stock. The calculation to determine shareholder’s equity is quite simple as outlined further in this paper. In order to figure out where the numbers are located for this figure, just look for the shareholder’s equity financial statement. Comprehensive income also plays a role in equity. Shareholder’s equity is also affected by the amount of shares in the open market. In addition, retained earnings and corporate dividends are coupled into the financial statement that encompasses shareholder’s equity. Overall, shareholder’s equity is easily determined by viewing the shareholder’s equity statement. Stockholder’s equity is the ownership interest of shareholders. It is easily calculated by taking total assets minus total liabilities. The remaining amount is the equity in the business that is not financed, investments, and operating income. This is simply the amount invested by the shareholder’s through the purchase of stock, common and preferred. Common stock has a basic layout. It can include dividends but a company is not required to pay out dividends. Preferred stock sells at a higher price because it has a set of rules essentially. If the preferred stock requires dividends the company is required to pay them first before common stockholders are paid. Shareholder’s equity is reported in a single statement called the shareholder’s equity statement. This financial report includes information from accounts of common stock, capital in excess of par, preferred stock (if applicable), and capital in excess of par in relation to preferred stock, retained earnings, other comprehensive income, and treasury stock (if applicable). Basically this is a breakdown of what happens and where the excess of total assets minus total income is allocated. Comprehensive income is
Samantha Partida
ACC 306
Ashley Harper
December 10, 2012
Shareholder’s equity, also known as stockholder’s equity, is essentially the amount of equity directly from stock. The calculation to determine shareholder’s equity is quite simple as outlined further in this paper. In order to figure out where the numbers are located for this figure, just look for the shareholder’s equity financial statement. Comprehensive income also plays a role in equity. Shareholder’s equity is also affected by the amount of shares in the open market. In addition, retained earnings and corporate dividends are coupled into the financial statement that encompasses shareholder’s equity. Overall, shareholder’s equity is easily determined by viewing the shareholder’s equity statement. Stockholder’s equity is the ownership interest of shareholders. It is easily calculated by taking total assets minus total liabilities. The remaining amount is the equity in the business that is not financed, investments, and operating income. This is simply the amount invested by the shareholder’s through the purchase of stock, common and preferred. Common stock has a basic layout. It can include dividends but a company is not required to pay out dividends. Preferred stock sells at a higher price because it has a set of rules essentially. If the preferred stock requires dividends the company is required to pay them first before common stockholders are paid. Shareholder’s equity is reported in a single statement called the shareholder’s equity statement. This financial report includes information from accounts of common stock, capital in excess of par, preferred stock (if applicable), and capital in excess of par in relation to preferred stock, retained earnings, other comprehensive income, and treasury stock (if applicable). Basically this is a breakdown of what happens and where the excess of total assets minus total income is allocated. Comprehensive income is
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