Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 31, 2020, Ainsworth, Inc., had 720 million shares of common stock outstanding. Thirty one million shares of 7%, $100 par value cumulative, nonconvertible

image text in transcribed

On December 31, 2020, Ainsworth, Inc., had 720 million shares of common stock outstanding. Thirty one million shares of 7%, $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 $195 million, including an after-tax loss from discontinued operations of $510 million. Required: 1. Compute Ainsworth's net loss per share for the year ended December 31, 2021. 2. 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 $0.75, based on net income (no discontinued operations) of $540 million and a weighted- average number of common shares of 720 million. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Compute Ainsworth's net loss per share for the year ended December 31, 2021 and the per share amount of income or loss from continuing operations for the year ended December 31, 2021. (Negative amounts should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Show less Numerator 1 Denominator = Net Loss Per Share Numerator / Denominator Income/Loss from Continuing Operations Per Share 2. Req 1 and 2 Req3 >

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

Inventory Best Practices

Authors: Steven M. Bragg

2nd Edition

1118000749, 9781118000748

More Books

Students also viewed these Accounting questions

Question

Gambling by student and professional athletes

Answered: 1 week ago

Question

How can you create a supportive context for your personal growth?

Answered: 1 week ago

Question

How do romantic relationships typically escalate and deteriorate?

Answered: 1 week ago