Use the Comparative Financial Statements of Penny Company for the Year

question 12

Essay

Use the comparative financial statements of Penny Company for the year ended December 31, 2015 to answer the following questions.
Penny Company
Statement of Stockholder's Equity
for the Year Ended December 31, 2015
.
REQUIRED:
1 What is the primary cause of the change in Penny's stockholders' equity from January 1, 2015 to December 31,
2015?
2 Did Penny declare dividends during 2015? How do you know? Which items would be included as part of comprehensive income, if any?

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Definitions:

Communism

A political and economic ideology that aims at creating a classless society in which the means of production are owned and controlled by the community as a whole.

Capitalism

An economic system based on private ownership of the means of production and their operation for profit.

Capitalist States

Countries where the trade and industry are controlled by private owners for profit, rather than by the state.

Authoritarian States

Nations governed by a single ruler or a small group of individuals, where individual freedoms and democratic processes are limited.