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1. See the 2016 annual report (10K filed 2/23/2017) for Colgate-Pamolive.
Question
1. What was the % change in net income
from 2015 to 2016?
2. Was any Treasury Stock acquired during
2016? If yes, recreate the journal entry that
was made. Where did you get the
information for this journal entry?
3. Why was Treasury Stock Reissued
during 2016? How was Stockholder’s
Equity affected?
4. Does Colgate have a simple or a
complex capital structure and how do you
know? Your Answer
Increased by 76.37%
Yes. Treasury stock of $1,033 was
purchased (19,135 – 18,102).
Entry:
Dr. Treasury stock 1,033
Cr. Cash
1,033
Treasury stock was reissued to obtain
additional cash. Stockholder’s equity
increased as more shares were outstanding.
It has a simple capital structure. The
company lacks other classes of shares such
as preferred stock. In the capital structure,
only equity and debt are the major
elements. 5. Basic and fully diluted Earnings Per
Share for the period ending 12/31/2016 are
__________ and
_________,
respectively. How were the 12/31/2016
EPS amounts calculated? (Hint: See
Footnote 12)
6. What was the weighted-average
estimated fair value of each stock option in
2016? How was this amount determined?
7. How did stock based compensation
impact the income statement in 2016 (pretax)?
8. What was Total Comprehensive Income
for the year ending 12/31/2016?
9. What components of other
comprehensive income discussed in ACC
311 impacted CP? 1 10. What was the total change in AOCI
during 2016? Can you reconcile this
difference to the comprehensive income
statement? Show calculation.
11. What amount of total dividends was
declared in 2016? What was the total cash
dividends paid in 2016?
12. What is the amount of CP’s income tax
expense for 2016? What do they call
income tax expense?
13. Accounting for financial statement
purposes and accounting for tax purposes
result in different tax amounts. What was
current taxes for tax purposes? Show
calculation. (Hint see Footnote 11)
14. What items caused the temporary
differences?
15. Read Footnote #10. What is the
funded status of the pension plan in the
United States as of the end of 2016?
Where does this amount appear on the
balance sheet?
16. How are the plan assets within the US
invested? How are the plan assets valued?
What percentage of the plan assets are
Level 1, Level 2, or Level 3? How does
CP define Level 1, 2, and 3 and where is
this noted?
17. For the U.S. Pension Plan, what was
the periodic pension cost? What were the
components of this expense? Do they
match up with what was discussed in class?
18. Was there an unrecognized gain or loss
in the U.S. pension plan due to return on
plan assets in 2016? What was the
amount?
19. What discount rate and rate of return is 2 being used in the United States? What
would happen to the interest expense
component of pension expense (increase or
decrease) if the discount rate was
increased?
See the Groupon, Inc Annual Report
(10-K) for the period ending 12/31/2016
20. List two risk factors for the company. 1. The company’s strategy to grow its
marketplace may not be successful as it
exposes the company to additional
resources.
2. The company’s revenue and operating
results may continue being volatile. 21. What is their retained earnings balance
as of 12/31/2016? Did Retained Earnings
increase or decrease during 2016 and by
what amount?
22. How many shares of common stock
did Groupon buy back in 2016?
23. Does Groupon have a Valuation
Allowance on their Deferred Tax Assets?
If yes, what is the amount? Recreate the
simple journal entry you believe they made
in 2016?
24. Why does Groupon have a Valuation
Allowance Account on their Deferred Tax
Assets?
25. When and how does Groupon
recognize revenue? Have they
implemented the new Revenue Recognition
Standard?
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