Winnebago is a familiar name on vehicles travelling North American highways. The company manufactures and sells large motor homes for vacation travel. These motor homes can be quickly recognized because of the company's "flying W" trademark. A news article contained the following information: The Company's profits have been running double a year ago, revenues were up 27 percent in the May quarter and order backlog stands at 2,229 units. Those are the kind of growth statistics that build confidence in the boardroom. The Company has announced plans to spend $3.6 million to expand its manufacturing facilities and it recent y authorized repurchase of $15 million worth of its own shares, the third buyback in two years. The Company's stock is now selling for $25 per share. Required: 1. Determine the impact of this transaction on the financial statements. 2. Why do you think the board decided to repurchase the company's shares? 3. What impact will this purchase have on Winnebago's future dividend obligations?