(Learning Objectives 2, 3, 4, 5: Inferring transactions from a company’s shareholders’ equity) Supreme Products Company reported the following shareholders’ equity on its balance sheet:

❙ Requirements 1. What caused Supreme’s preference shares to decrease during 20X7? Cite all possible causes.

2. What caused Supreme’s ordinary shares to increase during 20X7? Identify all possible causes.

3. How many shares of Supreme’s ordinary shares were outstanding at December 31, 20X7?

4. Supreme’s net income during 20X7 was €1,475 million. How much were Supreme’s dividends during the year?

5. During 20X7, Supreme sold no treasury shares. What average price per share did Supreme pay for the treasury shares the company purchased during the year?