Focus on Financial Statements Online FFS 16-2 FFS 16-3 FFS 16-4 Chapter 16 Refer to the Fnancial statements and notes to the Fnancial statements for Leon’s on pages I-3 to I-9 in Appendix I at the end of the textbook. Required Answer the following questions. 1. a. Where is the statement of retained earnings for Leon’s? b. The 2002 retained earnings was decreased by dividends of $19,392 (thousand) and by $4,825 (thousand) representing the excess of the share repurchase over the carrying value of the related shares. Explain what this means. 2. Prepare the entry that might have been recorded regarding the share repurchase. 3. Leon’s 2002 income statement shows the basic weighted average number of common shares outstanding to be 19,589,298. The actual common shares outstanding at December 31, 2002, were 19,490,144 according to Note 8 to the Fnancial statements. Explain how the weighted average shares outstanding can be greater than the actual
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