From the course: Reading Corporate Financial Statements
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Understanding the statement of stockholder's equity
From the course: Reading Corporate Financial Statements
Understanding the statement of stockholder's equity
- The importance of equity financing is huge. And so it's really important that we keep track of any changes with equity financing, and the statement of stockholders' equity is where we'll do that. Here we are, can you believe it learning how to prepare the fourth financial statement. The statement of stockholders' equity, which reflects the changes in our stock accounts and retained earnings. A business needs to report the changes in stockholders' equity during a reporting period usually a fiscal year. And if you remember these three things, you'll be able to prepare a statement of stockholders' equity. First, you'll need to be able to show the stock that's been issued, both the par amount and the additional paid-in capital amount. Second, you'll need to be able to show the retained earnings for the period and finally third, you'll need to be able to show the treasury stock for the period. Let's tackle each of these…
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