Comparative Statements of Shareholders Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2016, 2017, and 2018. Required:
Comparative Statements of Shareholders Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2016, 2017, and 2018.
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, 2016, 2017, and 2018. 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).)
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LOCKE INTERTECHNOLOGY CORPORATION Statements of Shareholders' Equity For the Years Ended Dec. 31, 2016, 2017, and 2018 ($ in millions) Preferred Stock, $10 par Additional Common Stock, $1 par 85 Total Paid-in Capital $ 59:5 610 94 Shareholders Retained Earnings $ 1,918 Equity 2,598 621 104 Balance at January 1, 2016 Sale of preferred shares Sale of common shares, 7/1 Cash dividend, preferred Cash dividend, common Net income (15) 440 2,338 (34) (19) 440 1,299 (49) Balance at December 31, 2016 95 3,743 Retirement of common shares, 4/1 Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the form ofa 45.5 common stock dividend, 8/12 Net income (45.5) 548 2,820 (123.65) 540 4,172 Balance at December 31, 2017 136.5 13.65 1, 204.5 18% common stock dividend, Sale of common shares, 9/1 Cash dividend, preferred Cash dividend, common Net income 5/1 118 40 (42) 452 (42) 452 Balance at December 31, 2018 $153.15 $1,354.5 $3,103.35 $ 4,622 Earnings per share Year Numerator Denominator 2016435,000,000 535,000,000 $ 449,000,000 x / 90,000,000.00 x$ 138,000,000.00 151,150,000.00S 4.83 3.88 2.97 2018 Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted LOCKE INTERTECHNOLOGY CORPORATION Statements of Shareholders' Equity For the Years Ended Dec. 31, 2016, 2017, and 2018 ($ in millions) Preferred Stock, $10 par Additional Common Stock, $1 par 85 Total Paid-in Capital $ 59:5 610 94 Shareholders Retained Earnings $ 1,918 Equity 2,598 621 104 Balance at January 1, 2016 Sale of preferred shares Sale of common shares, 7/1 Cash dividend, preferred Cash dividend, common Net income (15) 440 2,338 (34) (19) 440 1,299 (49) Balance at December 31, 2016 95 3,743 Retirement of common shares, 4/1 Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the form ofa 45.5 common stock dividend, 8/12 Net income (45.5) 548 2,820 (123.65) 540 4,172 Balance at December 31, 2017 136.5 13.65 1, 204.5 18% common stock dividend, Sale of common shares, 9/1 Cash dividend, preferred Cash dividend, common Net income 5/1 118 40 (42) 452 (42) 452 Balance at December 31, 2018 $153.15 $1,354.5 $3,103.35 $ 4,622 Earnings per share Year Numerator Denominator 2016435,000,000 535,000,000 $ 449,000,000 x / 90,000,000.00 x$ 138,000,000.00 151,150,000.00S 4.83 3.88 2.97 2018 Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted
