Question: 1. Silk Station has the following accounts at December 31: Common Stock, $1 par value, 1,000,000 shares; Paid-in Capital, $17 million; Retained Earnings, $10 million; and Treasury Stock, 50,000 shares, $1.1 million. Prepare the stockholders' equity section of the balance sheet.
2. The financial statements of Limited Brands, Inc., include the following selected data ($ in millions): sales, $9,043; net income, $220; beginning stockholders' equity, $2,219; and ending stockholders' equity, $1,874. Calculate the return on equity.