Question

Equity Attributable to Company Stockholders Boeing Company reported the following items on its 2015 form 10-K. Shareholders' Equity (S millions, except par and shares) Common stock, par value $5.00 1,200,000,000 shares authorized; 1,012,261,159 shares issued Additional paid-in capital Treasury stock, at cost Retained earnings Accumulated other comprehensive loss Total shareholders' equity Noncontrolling interests Total equity Total liabilities and equity 2015 2014 S5,061 $5,061 4,834 4,625 (29,568) (23,298) 38,756 36,180 (12,748) (13,903) 6,335 8,665 125 6,397 8,790 $94408 $92,921 62 Which equity number should be used to calculate return on equity for 2015 and for 2014? For each year, enter the amount that should be used for equity to calculate return on equity. 2015 $ million 2014 million

Answer 1

Shareholder's Equity = Issued share capital + Additional paid in capital + Retained Earnings - Treasury Stock - Accumulated other comprehensive losses Calculate the amount used for equity to calculate return on equity as follows: (Issued share capital + Additional paid-in capital 2015 Shareholder's Equity = - Treasury stock + Retained earnings |- Accumulated other comprehensive losses = $5,061+$4,834-$29,568+$38,756-$12,748 = $6,335 Hence, the amount of shareholders equity in 2015 is $6,335 million. (Issued share capital + Additional paid in capital 2014 Shareholder's Equity = - Treasury stock + Retained earnings |- Accumulated other comprehensive losses = $5,061+$4,625-$23,298+$36,180-$13,903 = $8,665 Hence, the amount of shareholders equity in 2014 is $8,665 million.