The effect of a repurchase on the financial statements depends on the method used to repurchase the shares.

1. If the company uses cash to repurchase shares, the following effects can be observed on the financial statements:

- The cash account on the balance sheet will decrease.
- The equity account will decrease by the amount of the repurchase.
- The earnings per share (EPS) will increase as the number of outstanding shares decreases.

2. If the company uses debt to repurchase shares, the following effects can be observed on the financial statements:

- The cash account on the balance sheet will increase.
- The liability account will increase by the amount of the debt taken on to finance the repurchase.
- The equity account will decrease by the amount of the repurchase.
- The interest expense on the income statement will increase due to the debt taken on to finance the repurchase.

Overall, a repurchase can have a positive impact on the financial statements by increasing EPS and signaling to investors that the company believes its shares are undervalued. However, if the company takes on debt to finance the repurchase, it can also increase financial risk and interest expenses.