Kimblery Clark 1998 Annual Report - Accounting Hw

In answering the following questions refer to the attached excerpts from the 1998 annual report of KIMBERLY-CLARK CORPORATION (KC). KC is principally engaged in the manufacturing and marketing throughout the world of a wide range of products for personal, business and industrial uses. KC is organized into three global business segments: Tissue, Personal Care, and Health Care and Other.

In your answer to each of the questions below, explain which statements contain the information and how you calculated the required amount (if a calculation was needed). Note that for many of the questions, several statements contain the required information and there are several ways to calculate the amount. Discuss all the statements that contain the information and all possible ways to calculate the amount.

1. What was the book value (financial statement value) of total assets on 12/31/98?

$11,510,300,000. Information found on the Consolidated Balance Sheet. No calculation required.

What portion of this amount represents owners’ claim?

$3,887,200,000. (Amount of Stockholders Equity). Information found on the Consolidated Balance Sheet. No calculation required.

2. What was the book value of total liabilities on 12/31/98?

$7,623,100,000.00. Derived by subtracting stockholders equity by total assets. ). Information found on the Consolidated Balance Sheet.

3. What was the amount of retained earnings on 12/31/98?

$5,509,100,000. Information found on the Consolidated Balance Sheet. No calculation required.

4. What was the change in retained earnings in 1998?

(Hint: Change is simply this year’s ending balance – last year’s ending balance)

$616,200,000.00 . Derived by subtracting last years retained earnings from this year’s. ($5,509,100,000 - $4,892,900,000). Information found on the Consolidated Balance Sheet.

5. What was net income in 1998?

$1,165,800,00,000. Information found on the Consolidated Income Statement and on the...