Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021. $1
Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021. $1 par Retained Earnings $ 1,896 LOCKE INTERTECHNOLOGY CORPORATION Statements of Shareholders' Equity For the Years Ended Dec. 31, 2019, 2020, and 2021 ($ in millions) Preferred Common Additional Stock, Stock, Paid-in $10 par Capital Balance at January 1, 2019 $ 90 $ 540 Sale of preferred shares 7 500 Sale of common shares, 7/1 6 83 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2019 7 96 1,123 Retirement of common shares, 4/1 (6) (38) Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the form of a common stock dividend, 8/12 45.0 (45.0) Net income Balance at December 31, 2020 7 135.0 1,040.0 10% common stock dividend, 5/1 13.50 130 Sale of common shares, 9/1 3 40 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2021 $ 7 $151.50 $1,210.0 (2) (11) 330 2,213 (23) (2) (15) Total Shareholde Equity $ 2,526 507 89 (2) (11) 330 3,439 (67) (2) (15) 430 2,603 (143.50) 430 3,785 (2) (31) 430 $2,856.50 43 (2) (31) 430 $ 4,225 Required: Infer from the statements the events and transactions that affected Locke Intertechnology Corporation's shareholders' equity and compute earnings per share as it would have appeared on the income statements for the years ended December 31, 2019, 2020, and 2021. No potential common shares were outstanding during any of the periods shown. (Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) Year Numerator / Denominator Earnings per share 2019 = 2020 - 2021 /
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started