hh E 18-1 Comprehensive income LO18-2The following is from the 2024 annual report of Kaufman Chemicals, Inc.:Statements of Comprehensive IncomeNet IncomeOther comprehensive income:Change in net unrealized gains on AFS investments, net of tax of $22, ($14), and $15in 2024, 2023, and 2022, respectivelyOtherTotal shareholders' equityRequired:1. What is comprehensive income and how does it differ from net income?$20243558,5676,544107$15,573Total comprehensive incomeKaufman reports accumulated other comprehensive income in its balance sheet as a component of shareholders' equity as follows:($ in millions)Shareholders' equity:Common stockAdditional paid-in capitalRetained earningsAccumulated other comprehensive income$20233558,5675,98875Years Ended December$14,9852024$85634312023 2022$766 $594(21)23(2)(1)$888 $744 $6182. How is comprehensive income reported in a balance sheet?3. From the information provided, determine how Kaufman calculated the $107 million accumulated other comprehensive income in2024.

Required: 1. What is comprehensive income and how does it differ from net income? 2. How is comprehensive income reported in a balance sheet? 3. From the information provided, determine how Kaufman calculated the $107 million accumulated other comprehensive income in 2024.

Required: 1. What is comprehensive income and how does it differ from net income? 2. How is comprehensive income reported in a balance sheet? 3. From the information provided, determine how Kaufman calculated the $107 million accumulated other comprehensive income in 2024.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 74E

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Question

E 18-1 Comprehensive income LO18-2
The following is from the 2024 annual report of Kaufman Chemicals, Inc.:
Statements of Comprehensive Income
Net Income
Other comprehensive income:
Change in net unrealized gains on AFS investments, net of tax of $22, ($14), and $15
in 2024, 2023, and 2022, respectively
Other
Total shareholders' equity
Required:
1. What is comprehensive income and how does it differ from net income?
$
2024
355
8,567
6,544
107
$15,573
Total comprehensive income
Kaufman reports accumulated other comprehensive income in its balance sheet as a component of shareholders' equity as follows:
($ in millions)
Shareholders' equity:
Common stock
Additional paid-in capital
Retained earnings
Accumulated other comprehensive income
$
2023
355
8,567
5,988
75
Years Ended December
$14,985
2024
$856
34
31
2023 2022
$766 $594
(21)
23
(2)
(1)
$888 $744 $618
2. How is comprehensive income reported in a balance sheet?
3. From the information provided, determine how Kaufman calculated the $107 million accumulated other comprehensive income in
2024.

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