How would Squares IPO impact its balance sheet

How would Square’s IPO impact its balance sheet and income statement? Original blog posting (April 12, 2016) Copyright © 2016 by Dr. Wendy Tietz. This work is licensed under a Creative Commons Attribution. Non. Commercial 3. 0 Unported License.

Square, Inc. • Electronics payment company founded by Jack Dorsey • Also founded Twitter • In November 2015, Square completed its IPO • Issued 29, 700, 000 shares of Class A Common Stock for $9 per share • Par value of $0. 0000001 • Net proceeds of $245. 7 million

Question 1 On the date of the IPO, how would Square’s balance sheet have been impacted? What about its income statement?

Question 2 Since the date of the IPO, Square’s stock price has fluctuated from a low of $8. 37 (February 8, 2016) to a high of $13. 09 (December 31, 2015. ) Does the fluctuating stock price have an impact on Square’s total stockholders’ equity? Why or why not?

Question Recap 1. On the date of the IPO, how would Square’s balance sheet have been impacted? What about its income statement? 2. Since the date of the IPO, Square’s stock price has fluctuated from a low of $8. 37 (February 8, 2016) to a high of $13. 09 (December 31, 2015. ) Does the fluctuating stock price have an impact on Square’s total stockholders’ equity? Why or why not?

For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http: //accountingintheheadlines. com/ Questions or comments? Contact Dr. Wendy Tietz at wtietz@kent. edu Copyright © 2016 by Dr. Wendy Tietz. This work is licensed under a Creative Commons Attribution. Non. Commercial 3. 0 Unported License.