please explain earning for share step by step thank you

LEAAJUNG OSJECTIVES - Compute basic and daned earrings per share lor a company that (1) aseues adscona common rock during the year (2) has convernbie preferred stock outstanding - Contart trends in income fiom osctinuing operations and net incorne using both larki sexes and eannings per share. - Alter the worishoet to include a change in accounting principle. - Create a column char ploting shares curstanding over time PROBLEM DATA Ponce Towers, inc, had 50,000 shares of common stock and 10,000 shares of 5100 par wat B\% preferred stock outstanding on January 1, 2011. Each share of preferred stock a convinst into four shares of common stock. The stock has not been converted. During tha yets nita Towers issued additonal sthares of common stock as follows: For 2011. Ponce. Towers, Inc, had income trom continuing operations of $545,000=124 $72,000 loss from disconsinued operations (net of tru). AEQUIREMENT 1. As vice president of finance for the firm, you have been asked to calculate earina share for 2011. The worksheet EPS has been provided to assist you. 2. Open the fle EPS from the website for this book at cengagebrain com. Enter all ircut wan (AF) in the appropriate cells in the Data Section. Enter all formulas in the approprate can in the Answer Section. Enter your name in cell A1. Save the completed file as EFS2 Prat the worksheet when done. Also print your formulas. Check figure: Basic earninge per start trom consinuing operations (cell 029 ). $5.94. LEARNING OBJECTIVES - Compute basic and diluted earnings per share for a company that: (1) issues additional common stock during the year (2) has convertible prelerred stock outstanding (3) has discontinued operations - Contrast trends in income from continuing operations and net income using both total dolar and earnings per share. - Alter the worksheet to include a change in accounting principle. - Create a column chart plotting shares outstanding over time. PROBLEM DATA Ponce Towers, Inc, had 50,000 shares of common stock and 10,000 shares of $100 par vaia 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertit into four shares of common stock. The stock has not been converted. During the year, Porr Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc, had income from continuing operations of $545,000 and 1 $72,000 loss from discontinued operations (net of tax). REQUIREMENT 1. As vice president of finance for the firm, you have been asked to calculate eanings pt share for 2011. The worksheet EPS has been provided to assist you. 2. Open the fle EPS from the website for this book at cengagebrain.com. Enter all input of (AF) in the appropriate cells in the Data Section. Enter all formulas in the approprises on in the Answer Section. Enter your name in cell A1. Save the completed fie as EPS2 P/ the worksheet when done. Also print your formulas. Check figure: Basic eamings pe 5t from continuing operations (cell D29), 55.94. 3. During 2012, Ponce Towers issued 30.000 additional shares of common stock on Jure 1 . and 24,000 on November 1. The company eamed 5602,000 from contruing opetrations and 528,000 from another segment of the business that was discontrued durng the year. Use your completed worksheet to prepare a computation of eamings per share for 2012. Erase any data in the Data Section that are not required for 2012 . Save the solution for 2012 as EPS3 and print the results. CHART ANALYSIS 4. Wth the EPS3 file still on the screen, you are going to compare two charts in this step. To begin, click the Total Income sheet tab. The chart that appears on the screen depicts the trend tor income trom continuing operations and net income. Nice improvement. Now click the Basic EPS sheet tab. This chart shows the trend for basic earnings per share. Rather dismall. Given the good resulls in the first chart and the disappointing trends in the second chart. should the stockholders be pleased or unhappy? Explain. When the assignment is complete, close the flie without saving it again. nCKLERS (optional) Worksheet. Open the EPS3 file. Suppose that during 2012. Ponce Towers had incurred an chasrdinary attertax loss of $50,000 trom an earthquake. Revise the worksheet to acommodate this new iters and recompute earnings per share. Prevew the printout to make Ere that the worksheet will print neatly on one page, and then print the worksheet. Save the oimpleted tle asksheet Chan. Ueing the EPS2 fle, create a column chart that plots the total number of common Eete custarding on a month-by-month basis troughout 2011. Complete the Chart Ticklor Dtep Tabstaraing on a month-by-month basis troughout 2011 . Complete the Chant Tolich fremering the char En on row 49 of the Total income sheet tab) and use the as a bess for tistweter on chart. Enter all applopriate tities, legends, and formats