Red Rider Company has the following stockholders’ equity
Question and Solution
Red Rider Company has the following stockholders’ equity section on its balance sheet as of December 31, 2012 and 2011.
Based on this stockholders’ equity section, answer the following questions: 1. At the end of 2012, what was the total amount of equity financing provided by Red Rider’s investors? 2. At the end of 2012, how much of Red Rider’s earnings had not been distributed to investors? 3. What is the total amount of “other equity items’’ contained in the 2012 stockholders’ equity section? 4. What contributed most to the increased equity from 2011 to2012?