3 Following is the stockholders' equity section of the Spirit Airlines, Inc. 2016 balance sheet ($ in thousands):
Required:
a. Spirit has 240 million shares of common stock authorized, but only 73,549,872 shares issued. Why is there a difference between these two numbers?
b. Verify that Spirit's common stock balance is $7 thousand.
c. How many common shares did Spirit have outstanding at the end of the year?
d. Calculate the average cost at which Spirit repurchased its common stock.

Question

3 Following is the stockholders' equity section of the Spirit Airlines, Inc. 2016 balance sheet ($ in thousands):
  Required:
a. Spirit has 240 million shares of common stock authorized, but only 73,549,872 shares issued. Why is there a difference between these two numbers?
b. Verify that Spirit's common stock balance is $7 thousand.
c. How many common shares did Spirit have outstanding at the end of the year? 
d. Calculate the average cost at which Spirit repurchased its common stock.

Quizplus · Accepted Answer

The Answer of 3 Following is the stockholders' equity section of the Spirit Airlines, Inc. 2016 balance sheet ($ in thousands):
  Required:
a. Spirit has 240 million shares of common stock authorized, but only 73,549,872 shares issued. Why is there a difference between these two numbers?
b. Verify that Spirit's common stock balance is $7 thousand.
c. How many common shares did Spirit have outstanding at the end of the year? 
d. Calculate the average cost at which Spirit repurchased its common stock.

3 Following Is the Stockholders' Equity Section of the Spirit