Winnebago is a familiar name on vehicles traveling U.S. 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 recent news article contained the following information:

Required: 1. Determine the impact of the stock repurchase on the financial statements. 2. Why do you think the board decided to repurchase the stock? 3. What impact will this purchase have on Winnebago's future dividend obligations?

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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 recently 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.