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Reconciling Common Stock and Treasury Stock Balances Following is the stockholde

ID: 2548217 • Letter: R

Question

Reconciling Common Stock and Treasury Stock Balances
Following is the stockholders' equity section from the Abercrombie & Fitch Co. balance sheet.



(a) Show the computation to yield the $1,033 balance reported for common stock. Enter complete number for number of shares (with all zeros).
(Answer

shares) x ($Answer

) = $1,033 thousand

(b) How many shares are outstanding at 2013 fiscal year-end?
Answer

shares

(c) Use the common stock and paid-in capital accounts to determine the average price at which Abercrombie & Fitch issued its common stock. (Round your answer to two decimal places.)
$Answer



(d) Use the treasury stock account to determine the average price Abercrombie & Fitch paid when it repurchased its common shares. (Round your answer to two decimal places.)
$Answer

Stockholders' Equity (thousands, except par value amounts) February 2, 2013 January 28, 2012 Class A common stock-$0.01 par value: 150,000 shares authorized and 103,300 shares issues at each of February 2, 2013, and January 28, 2012 $ 1,033 $ 1,033 Paid-in capital 403,271 369,171 Retained earnings 2,567,261 2,389,614 Accumulated other comprehensive income (loss),
net of tax (13,288) 6,291 Treasury stock at average cost: 24,855 and 17,662 shares at February 2, 2013 and
January 28, 2012, respectively (1,140,009) (834,774) Total shareholders' equity $ 1,818,268 $ 1,931,335

Explanation / Answer

103,300 shares * $0.01 par value =$1,033

Outstanding shares = issued shares – repurchased shares

outstanding shares = 103,300,000 – 24855,000

Outstanding shares = 78445000 shares

Proceeds from sale =common stock + Additional paid in capital

= 1,033,000+403,271,000

= $404,304,000

The average price at which abercomie issued its common stock is

$404,304,000/103,300,000 shares =$3.91

$1,140,009/24855 shares = $45.87