There are number of reasons why the companies will buy back its shares of their own stock, Disney Inc. bought back 74 million of shares paying $7.5 billion dollars during its 2016 accounting year. How was Disney Inc.s balance sheet was impacted by the common stock buy back? (OA -Operating activity, FA- Financing activity)

A.

Assets

=

Liabilities

Stockholders' Equity

Revenue

-

Expense

=

Net Income

Statement of Cash flow

Cash

=

Notes payable

+

Common Stock

+

Additional Paid-in Capital

+

Retained earnings

+

Treasury stock

-

=

($7.5 billion )

=

($7.5 billion )

+

+

+

+

-

=

($7.5 billion )

FA

B.

Assets

=

Liabilities

Stockholders' Equity

Revenue

-

Expense

=

Net Income

Statement of Cash flow

Cash

=

Notes payable

+

Common Stock

+

Additional Paid-in Capital

+

Retained earnings

+

Treasury stock

-

=

($7.5 billion )

=

+

($7.5 billion )

+

+

+

($7.5 billion )

FA

C.

Assets

=

Liabilities

Stockholders' Equity

Revenue

-

Expense

=

Net Income

Statement of Cash flow

Cash

=

Notes payable

+

Common Stock

+

Additional Paid-in Capital

+

Retained earnings

+

Treasury stock

-

=

($7.5 billion )

=

+

+

+

($7.5 billion )

+

0

($7.5 billion )

-

=

($7.5 billion )

($7.5 billion )

OA

D.

Assets

=

Liabilities

Stockholders' Equity

Revenue

-

Expense

=

Net Income

Statement of Cash flow

Cash

=

Notes payable

+

Common Stock

+

Additional Paid-in Capital

+

Retained earnings

+

Treasury stock

-

=

($7.5 billion )

=

+

+

+

+

($7.5 billion )