Insight on Shareholders’ Investment
The 1999 annual report of Lands’ End, Inc. included the shareholders’ investment as follows:
CONSOLIDATED BALANCE SHEETS (In Part)
|
(In thousands) |
January 29, 1999 |
January 30, 1998 |
|
Shareholders’ investment: |
||
|
Common stock, 40,221 shares issued |
402 |
402 |
|
Donated capital |
8,400 |
8,400 |
|
Additional paid in capital |
26,994 |
26,457 |
|
Deferred compensation |
(394) |
(1,047) |
|
Accumulated other comprehensive income |
2,003 |
875 |
|
Retained earnings |
406,396 |
375,211 |
|
Treasury stock, 10,317 and 9,281 shares at cost, |
||
|
respectively |
(201,298) |
167,586) |
|
Total shareholders’ investment |
242,503 |
242,712 |
|
Total liabilities and shareholders’ investment |
$455,919 |
433,472 |
Required a. Describe the following accounts:
1. shareholders’ investment
2. deferred compensation
3. donated capital
4. accumulated other comprehensive income
5. retained earnings
6. treasury stock
b. Determine the number of shares:
1. common stock issued at January 29, 1999
2. common stock outstanding at January 29, 1999
c. 1. What is the dollar amount of shareholders’ investment at January 29, 1999?
2. Would the dollar amount of shareholders’ investment at January 29, 1999, equal the market value of the common stock at January 29, 1999? Explain.