Question
Comparative Statements of Shareholders Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021. LOCKE
Comparative Statements of Shareholders Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021.
LOCKE INTERTECHNOLOGY CORPORATION | ||||||||||||||||||||||||||||
Statements of Shareholders' Equity | ||||||||||||||||||||||||||||
For the Years Ended Dec. 31, 2019, 2020, and 2021 | ||||||||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||||
Preferred Stock, $10 par | Common Stock, $1 par | Additional Paid-in Capital | Retained Earnings | Total Shareholders' Equity | ||||||||||||||||||||||||
Balance at January 1, 2019 | $ | 90 | $ | 540 | $ | 1,896 | $ | 2,526 | ||||||||||||||||||||
Sale of preferred shares | 7 | 500 | 507 | |||||||||||||||||||||||||
Sale of common shares, 7/1 | 6 | 83 | 89 | |||||||||||||||||||||||||
Cash dividend, preferred | (2 | ) | (2 | ) | ||||||||||||||||||||||||
Cash dividend, common | (11 | ) | (11 | ) | ||||||||||||||||||||||||
Net income | 330 | 330 | ||||||||||||||||||||||||||
Balance at December 31, 2019 | 7 | 96 | 1,123 | 2,213 | 3,439 | |||||||||||||||||||||||
Retirement of common shares, 4/1 | (6 | ) | (38 | ) | (23 | ) | (67 | ) | ||||||||||||||||||||
Cash dividend, preferred | (2 | ) | (2 | ) | ||||||||||||||||||||||||
Cash dividend, common | (15 | ) | (15 | ) | ||||||||||||||||||||||||
3-for-2 split effected in the form of a common stock dividend, 8/12 | 45.0 | (45.0 | ) | |||||||||||||||||||||||||
Net income | 430 | 430 | ||||||||||||||||||||||||||
Balance at December 31, 2020 | 7 | 135.0 | 1,040.0 | 2,603 | 3,785 | |||||||||||||||||||||||
10% common stock dividend, 5/1 | 13.50 | 130 | (143.50 | ) | ||||||||||||||||||||||||
Sale of common shares, 9/1 | 3 | 40 | 43 | |||||||||||||||||||||||||
Cash dividend, preferred | (2 | ) | (2 | ) | ||||||||||||||||||||||||
Cash dividend, common | (31 | ) | (31 | ) | ||||||||||||||||||||||||
Net income | 430 | 430 | ||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 7 | $ | 151.50 | $ | 1,210.0 | $ | 2,856.50 | $ | 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).)
ANSWER FORMAT:
|
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