Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2014, 2015, and 2016.

image text in transcribed

Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2014, 2015, and 2016. LOCKE INTERTECHNOLOGY CORPORATION Statements of Shareholders' Equity For the Years Ended Dec. 31, 2014, 2015, and 2016 ($ in millions) Common Balance at January 1, 2014 Sale of preferred shares Sale of common shares, 7/1 Cash dividend, preferred Cash dividend, comman Net income Balance at December 31, 2014 Retirement of common shares, 4/1 Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the form of Preferred Stock, Additional Stock, Paid-in $10 par $1 per Capital Retained Earnings Total Shareholders' Equity $ 50 $ 560 $ 1,904 $2,514 11 540 551 10 87 97 (2) (2) (15) (15) 370 370 11 60 (6) 1,187 (42) 2,257 3,515 (27) (75) (2) (19) (2) (19) a common stock dividend, 8/12 27.0 (27.0) Net income 470 470 Balance at December 31, 2015 11 81.0 1,118 10% common stock dividend, 8.10 90 2,679 (98.10) 3,889 5/1 Sale of common shares, 9/1 3 33 36 Cash dividend, preferred (2) (2) Cash dividend, comman Net income (35) 438 (35) 438 Balance at December 31, 2018 11 $92.10 $1,241.0 $2,981.90 $4,328 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, 2014, 2015, and 2016. 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 1 Denominator = Earnings per share 2014 1 = 2015 2016 =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

14th Global Edition

978-0273753872, 0273753878

More Books

Students also viewed these Accounting questions