1.The following is the Statement of Shareholders Equity from Cisco Systems 2011 annual report. Remember that for comparative purposes, three years are reported in these statements. The 2010 and 2009 portions of the statement are not shown here for brevity of presentation.
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Required:
1. What is the purpose of the statement of shareholders equity?
2. How does Cisco account for its share buybacks?
3. For its share buybacks in fiscal year 2011, was the price Cisco paid for the shares repurchased more or less than the average price at which Cisco had sold the shares previously? Reconstruct the journal entry Cisco used to record the buyback.
4. What is comprehensive income? What is other comprehensive income?
5. What caused the change in Ciscos comprehensive income in fiscal year 2011? What was the amount of Accumulated other comprehensive income (loss) that Cisco reported in its July 30, 2011 balance sheet? Bespecific.