ACC-502 Topic 6 DQ 1

School: Grand Canyon University - Course: ACC-502 ACC502 - Subject: Accounting

ACC-502 Topic 6 DQ 1 The stockholders' equity section of the balance sheet typically includes the line items of retained earnings, common stock, treasury stock, and other comprehensive income. Select one company to analyze using the list of approved companies. Select two of these line items and explain what their balances might indicate about how the company is utilizing the investment by its stockholders. In your response, address whether you would want to purchase stock in the company based on your analysis. Participate in follow-up discussion by reviewing the information provided by classmates and providing your opinion as to whether you would purchase the company's stock. In your response, compare your opinions and note any significant similarities or differences. Greetings class and Professor! Just as anything, marked and calculated figures on the balance sheet and income statement hold valuable information for future investors and current investors that have already acquired stock in such companies. Like most investors, if not all of them, making money, particularly at a rapid or even a steady rate brings forth a challenge. However, making the right decisions regarding choosing what to buy holds significant merit to the equation of whether I should or not. When reviewing the balance sheet, looking at retained earnings and common stock catches my interest as these two lines inform investors of their potential for what could be made and give them options as to what to buy and how much to buy. As explained, "retained earnings are the link between the income statement and the balance sheet." (Youngest al., 2019). Within the last years, Ford is a company that currently has seen an increase in common stock while seeing a constant in par value from investors. With a Common Stock, par value $.01 per share for both 2021 & 2022. Ford in 2021 had outstanding 3,923,909,331 shares of Common Stock, where the common stock market value was $58,309,292,659. While in 2022, Ford had outstanding 3,933,395,476 shares of Common Stock with a value of$79,847,928,163 (Ford, 2022). The capital par value shows how much an investor pays to the company, and the Par value is printed on the stock certificate (Young et al.,2019). If a company buys back its own stock, those repurchased shares are called treasury stock. The number of shares outstanding can (and usually does) fluctuate over time. The number of shares outstanding increases if a company sells more shares to the public, splits its stock, or employees redeem

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