Acc/561 2 Accounting Transactions And Concepts

Week 2 Accounting Transactions and ConceptsACC/561Christinna ForresterTutor’s Name30/03/2017Examination of the Financial Statements of Johnson and JohnsonThe net income for 2016 was $ 16,540 million up from$ 15,409 million the previous year. As a result of the increase in earnings the basic Earnings Per Share (EPS) went up from $5.56 to $ 6.04 and the diluted EPS went up from $ 5.48 to $ 5.93. this represented an increase of 9% and 8% respectively. This means that the common stock investors on Johnson and Johnson Company saw their earnings rise by 8% (Morningstar, 2017).The stockholders equity went down 1% from $ 71,150 million in 2015 to $ 70,418 million in 2016. Organizations such as labor unions are interested in the balance in shareholders' equity because it provides them information about a company’s profitability. This information is useful in judging the financial health of the company and for assessing whether employees are getting fair compensation in relation to other stakeholders (Morningstar, 2017).The total value of assets is$ 141,208 million after adjusting for total liabilities of $ 70,790 million the net assets are $ 70,418 million. This amount is very