Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On December 31, 2020, Ainsworth, Inc., had 700 million shares of common stock outstanding. Thirty million shares of 8%, $100 par value cumulative, nonconvertible preferred
On December 31, 2020, Ainsworth, Inc., had 700 million shares of common stock outstanding. Thirty million shares of 8%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2, 2021. On April 30, 2021, Ainsworth purchased 30 million shares of its common stock as treasury stock. Twelve million treasury shares were sold on August 31. Ainsworth issued a 5% common stock dividend on June 12, 2021- No cash dividends were declared in 2021. For the year ended December 31, 2021, Ainsworth reported a net loss of $190 million, including an aertax loss from discontinued operations of $500 million. Required: 1. Compute Ainsworth's net loss per share for the year ended December 3'1, 2021. 1 Compute the per share amount of income or loss from continuing operations for the year ended December 31, 2021. 3. Prepare an EPS presentation that would be appropriate to appear on Ainsworth's 2021 and 2020 comparative income statements. Assume EPS was reported in 2020 as $0.79, based on net income {no discontinued operations} of $553 million and a weighted- average number of common shares of700 million. Prepare an EPS presentation that would be appropriate to appear on Ainsworth's 2021 and 2020 comparative income statements. Assume EPS was reported in 2020 as $0.79, based on net income (no discontinued operations) of $553 million and a weighted-average number of common shares of 700 million. (Round your answers to 2 decimal places. Loss amounts should be indicated with a minus sign.) Show less A AINSWORTH, INC. 2021 and 2020 Comparative Income Statement 2021 2020 Earnings (Loss) Per Common Share: Income from continuing operations Loss from discontinued operations Net income (loss)
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