This case is based on the consolidated financial statements of Foot Locker, Inc., given in Appendix B at the end of this book. In particular, this case uses Foot Locker, Inc.’s consolidated statement of shareholders equity for the year 2007. (Note: The Statement of Stockholders Equity is discussed in detail in Chapter 11, pages 667 through 675.)
1. As of the end of fiscal 2007, how many classes of stock does Foot Locker, Inc., have authorized? Issued? Outstanding?
2. During 2007, Foot Locker, Inc., repurchased its treasury stock. How many shares did it purchase? How much did it pay for the stock? How much per share? Compare the price it paid for these shares with the market price of the company’s stock at the end of each quarter (see footnote 26). Does it look like the company was getting a good deal on the purchase of its stock? Why do you think it did it? (Challenge)
3. Did Foot Locker, Inc., issue any new shares of common stock during fiscal 2007? Briefly explain the reasons. (Challenge)
4. Prepare a T-account to show the beginning and ending balances, plus all the activity in Retained Earnings for fiscal 2007.