Hi Mindmeld, here's the step by step.
Firstly, to find the 6.8 let's go to the latest 10-Q filed 12/10/2001
Page 3, consolidated balance sheets.
Important part is in bold below.
My amateur view (apologies to the accountants if I am mutilating your fine language) Shareholder Equity exists in three accounts. Firstly there is "Paid In Capital" which is what the shareholders of the company have contributed, e.g. through equity financing.
Second there is "Retained Earnings", which is the sum of all GAAP profits and losses.
Third there is "Other Comprehensive Income" which consists of "unrealized" gains (mark-to-market accounting) on assets and other truly extrordinary income or loss. Where "extrordinary" is goverened by GAAP rather than the somewhat ad-hoc use of the term "extrordinary" in the pro-forma sense.
Together these accounts equal Shareholder's Equity, which is also the difference between assets and liabilities.
In theory, a shareholder contributes cash to the company and it appears as an asset under Paid In Capital, with which the company does something and generates profits and losses, which then accumulate under "Retained Earnings" if it is real, or "Comprehensive Income" if it is hypothetical.
Hence the three designations, and they always balance.
If you look into the 10-K there is always a statement of consolidated comprehensive income (or something equally stuffy sounding) which shows all of the puts and takes into each of the three accounts over time.
First, the balance sheet:
October 27, July 28,
2001 2001
------------ ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 4,487 $ 4,873
Short-term investments 2,873 2,034
Accounts receivable, net of allowance for doubtful accounts
of $311 at October 27, 2001 and $288 at July 28, 2001 1,181 1,466
Inventories, net 1,301 1,684
Deferred tax assets 2,271 1,809
Lease receivables, net 395 405
Prepaid expenses and other current assets 513 564
------------ ------------
Total current assets 13,021 12,835
Investments 10,570 10,346
Restricted investments 1,150 1,264
Property and equipment, net 2,585 2,591
Goodwill 3,300 3,189
Purchased intangible assets, net 1,366 1,470
Lease receivables, net 98 253
Other assets 3,450 3,290
------------ ------------
TOTAL ASSETS $ 35,540 $ 35,238
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 459 $ 644
Income taxes payable 276 241
Accrued compensation 1,180 1,058
Deferred revenue 2,784 2,470
Other accrued liabilities 2,304 2,553
Restructuring liabilities 316 386
------------ ------------
Total current liabilities 7,319 7,352
Deferred revenue 751 744
------------ ------------
Total liabilities 8,070 8,096
------------ ------------
Minority interest 20 22
Shareholders' equity:
Preferred stock, no par value: 5 shares authorized;
none issued and outstanding -- --
Common stock and additional paid-in capital, $0.001 par value:
20,000 shares authorized; 7,328 and 7,324 shares issued and
outstanding at October 27, 2001 and July 28, 2001, respectively 20,372 20,051
Retained earnings 6,800 7,344
Accumulated other comprehensive income (loss) 278 (275)
------------ ------------
Total shareholders' equity 27,450 27,120
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 35,540 $ 35,238
============ ============
|
