Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 31, 2023, Ainsworth, Incorporated had 760 million shares of common stock outstanding. Twenty nine million shares of 6%, $100 par value cumulative, nonconvertible

On December 31, 2023, Ainsworth, Incorporated had 760 million shares of common stock outstanding.

  • Twenty nine million shares of 6%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2, 2024.
  • On April 30, 2024, 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, 2024.
  • No cash dividends were declared in 2024.
  • For the year ended December 31, 2024, Ainsworth reported a net loss of $185 million, including an after-tax loss from discontinued operations of $490 million.

Required:

  1. Compute Ainsworth's net loss per share for the year ended December 31, 2024.
  2. Compute the per share amount of income or loss from continuing operations for the year ended December 31, 2024.
  3. Prepare an EPS presentation that would be appropriate to appear on Ainsworth's 2024 and 2023 comparative income statements. Assume EPS was reported in 2023 as $0.75, based on net income (no discontinued operations) of $570 million and a weighted-average number of common shares of 760 million.

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_2

Step: 3

blur-text-image_3

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

Financial Accounting

Authors: Strayer University

1st Edition

0470603526, 978-0470603529

More Books

Students also viewed these Accounting questions

Question

=+c) In what month of the year are gas prices highest?

Answered: 1 week ago

Question

Explain key approaches to implementing LMD

Answered: 1 week ago