What does the statement of stockholders' equity present?

The statement of stockholders' equity specifically illustrates the changes in equity for a company over a period of time. It provides a detailed account of how various components of equity, such as common stock, preferred stock, additional paid-in capital, retained earnings, and other comprehensive income, have changed. This statement reflects transactions like stock issuances, dividends declared, and the net income or loss, which all contribute to the overall equity position of the company.

In contrast, a summary of cash flows refers to the cash inflows and outflows over a period, a format that does not capture the details of stockholders' equity. The balance sheet provides a snapshot of a company's financial position at a specific point in time, including assets, liabilities, and equity, but does not detail how equity components have changed throughout the period. Lastly, the profit and loss statement, or income statement, focuses on revenues and expenses, ultimately reflecting the company's profitability rather than changes in equity. Thus, the correct choice, highlighting the changes in stockholders' equity, is essential for understanding a company's financial dynamics and ownership structure.