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Comparative Statements of Shareholders Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021. ($
Comparative Statements of Shareholders Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021.
($ in millions) Preferred Common Stock, Stock, $10 par $1 par $ 45 10 9 Additional Paid-in Capital $ 555 530 86 Retained Earnings $ 1,902 Total Shareholders Equity $ 2,502 540 95 (1) (14) 360 10 54 (8) 1,171 (41) (1) (14) 360 2,247 (26) (1) (18) 3,482 (75) (1) (18) Balance at January 1, 2019 Sale of preferred shares Sale of common shares, 7/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2019 Retirement of common shares, 4/1 Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the form of a common stock dividend, 8/12 Net income Balance at December 31, 2020 10% common stock dividend, 5/1 Sale of common shares, 9/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2021 23.0 (23.0) 460 2,662 460 3,848 10 69.0 6.90 3 1, 107.0 90 32 (96.90) (5) (34) 436 $ 2,962.10 35 (5) (34) 436 $ 4,280 $10 $ $78.90 $1,229.0 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).)Step by Step Solution
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