Question
In: Accounting
On December 31, 2020, Ainsworth, Inc., had 750 million shares of common stock outstanding. Twenty eight...
On December 31, 2020, Ainsworth, Inc., had 750 million shares of
common stock outstanding. Twenty eight million shares of 5%, $100
par value cumulative, nonconvertible preferred stock were sold on
January 2, 2021. On April 30, 2021, Ainsworth purchased 50 million
shares of its common stock as treasury stock. Twenty million
treasury shares were sold on August 31. Ainsworth issued a 4%
common stock dividend on June 12, 2021. No cash dividends were
declared in 2021. For the year ended December 31, 2021, Ainsworth
reported a net loss of $180 million, including an after-tax loss
from discontinued operations of $480 million.
Required:
1. Compute Ainsworth's net loss per share for the
year ended December 31, 2021.
2. Compute the per share amount of income or loss
from continuing operations for the year ended December 31,
2021.
3. Prepare an EPS presentation that would be
appropriate to appear on Ainsworth's 2021 and 2020 comparative
income statements. Assume EPS was reported in 2020 as $0.72, based
on net income (no discontinued operations) of $540 million and a
weighted-average number of common shares of 750 million.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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