Question

 Below are the account balances (all normal) in alphabetical order from Keurig Dr Pepper financial statements as of December 31, 2019 except the Retained Earnings account. All amounts are in millions of

 U.S. dollars. Assume no new investment by stockholders in 2019.

 Problem 2, Part (a): Prepare Keurig Dr Pepper's Income Statement for the year ended December 31, 2019.

 Problem 2, Part (b): Prepare Keurig Dr Pepper's Statement of Stockholders' Equity for the year ended December 31, 2019.

Answer 1

Part a.
Keurig Dr Pepper
Income Statement
for the year ended Dec31, 2019
Amt in USD Million
Particulars	Amt
Net Sales	11,120
Cost of Goods Sold	4,778
Gross Profit	6,342
Operational Expense
Selling , Gen & Admin Expense	3,606
Depreciation Expense	358
Total Operational Expense	3,964
EBIT	2,378
Interest Expense	684
EBT	1,694
Income Tax Expense	440
Net Income /(Loss)	1,254

Part b.
Keurig Dr Pepper
Statement of Shareholders' Equity
for the year ended Dec31, 2019
Amt in USD Million
Particulars	Common Stock	Retained Earning	Total Equity
Beginning Balance	21,571	873	22,444
Addition during the year 2019.	-	1,254	1,254
Dividend Paid during 2019.	-	(441)	(441)
Ending Balance	21,571	1,686	23,257