List a few key events and explain why they occurred and financial effects that impacted Microsoft's...

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Accounting

List a few key events and explain why they occurred andfinancial effects that impacted Microsoft's shareholder's equity in2016.
STOCKHOLDERS’ EQUITY STATEMENTS
(In millions)
Year Ended June 30, 2016 2015 2014
Common stock and paid-incapital
Balance, beginning ofperiod $68,465 $68,366 $67,306
Common stock issued 688 634 607
Common stock repurchased (3,689) (3,700) (2,328)
Stock-based compensationexpense 2,668 2,574 2,446
Stock-based compensation incometax benefits 0 588 272
Other, net 66 3 63
Balance, end of period 68,178 68,465 68,366
Retained earnings
Balance, beginning ofperiod 9,096 17,710 9,895
Net income 16,798 12,193 22,074
Common stock cash dividends (11,329) (10,063) (9,271)
Common stock repurchased (12,283) (10,744) (4,988)
Balance, end of period 2,282 9,096 17,710
Accumulated other comprehensiveincome
Balance, beginning ofperiod 2,522 3,708 1,743
Other comprehensive income(loss) (985) (1,186) 1,965
Balance, end of period 1,537 2,522 3,708
Total stockholders’ equity $71,997 $80,083
$89,784

Answer & Explanation Solved by verified expert

4.5 Ratings (860 Votes)

Common Stock repurchased This is repurchase of stock from the market and people by the company itself The same is done to preserve the stock price Also it increases the EPS of the stock It reduces the equity See Answer

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List a few key events and explain why they occurred andfinancial effects that impacted Microsoft's shareholder's equity in2016.STOCKHOLDERS’ EQUITY STATEMENTS(In millions)Year Ended June 30,201620152014Common stock and paid-incapitalBalance, beginning ofperiod$68,465$68,366$67,306Common stock issued688634607Common stock repurchased(3,689)(3,700)(2,328)Stock-based compensationexpense2,6682,5742,446Stock-based compensation incometax benefits0588272Other, net66363Balance, end of period68,17868,46568,366Retained earningsBalance, beginning ofperiod9,09617,7109,895Net income16,79812,19322,074Common stock cash dividends(11,329)(10,063)(9,271)Common stock repurchased(12,283)(10,744)(4,988)Balance, end of period2,2829,09617,710Accumulated other comprehensiveincomeBalance, beginning ofperiod2,5223,7081,743Other comprehensive income(loss)(985)(1,186)1,965Balance, end of period1,5372,5223,708Total stockholders’ equity$71,997$80,083$89,784

(In millions)
Year Ended June 30,	2016	2015	2014
Common stock and paid-incapital
Balance, beginning ofperiod	$68,465	$68,366	$67,306
Common stock issued	688	634	607
Common stock repurchased	(3,689)	(3,700)	(2,328)
Stock-based compensationexpense	2,668	2,574	2,446
Stock-based compensation incometax benefits	0	588	272
Other, net	66	3	63
Balance, end of period	68,178	68,465	68,366
Retained earnings
Balance, beginning ofperiod	9,096	17,710	9,895
Net income	16,798	12,193	22,074
Common stock cash dividends	(11,329)	(10,063)	(9,271)
Common stock repurchased	(12,283)	(10,744)	(4,988)
Balance, end of period	2,282	9,096	17,710
Accumulated other comprehensiveincome
Balance, beginning ofperiod	2,522	3,708	1,743
Other comprehensive income(loss)	(985)	(1,186)	1,965
Balance, end of period	1,537	2,522	3,708
Total stockholders’ equity	$71,997	$80,083	$89,784