This paper presents an instructional case based on the 2001 annual report of the Campbell Soup Company. During that year, Campbell’s stockholders’ equity went from a surplus of $137 million to a deficit of $247 million. The analysis will allow students to determine that the change resulted from borrowing to purchase treasury stock. Students are asked to consider why Campbell needed to purchase so much treasury stock, and why Campbell’s lenders allowed the firm to purchase treasury stock with borrowed funds until it placed itself in a negative owners’ equity position. The case provides an opportunity for students to examine the effect of unreported and under-reported assets on the relevance of financial statement information.