Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 19-8 (Algo) Net loss; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; discontinued operations [LO19-5, 19-6, 19-7, 19-13] On December 31, 2020, Ainsworth,

image text in transcribedimage text in transcribedimage text in transcribed

Problem 19-8 (Algo) Net loss; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; discontinued operations [LO19-5, 19-6, 19-7, 19-13] On December 31, 2020, Ainsworth, Inc., had 850 million shares of common stock outstanding. Thirty four million shares of 6%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2, 2021. On April 30, 2021, Ainsworth purchased 50 million shares of its common stock as treasury stock. Twenty million treasury shares were sold on August 31. Ainsworth issued a 4% 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 $210 million, including an after-tax loss from discontinued operations of $540 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 \$0.70, based on net income (no discontinued operations) of \$595 million and a weightedaverage number of common shares of 850 million. Complete this question by entering your answers in the tabs below. 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).) 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 $0.70, based on net income (no discontinued operations) of $595 million and a weighted-average number of common shares of 850 million. (Round your answers to 2 decimal places. Loss amounts should be indicated with a minus sign.)

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

Bio Technology Audit In Hungary Guidelines Implementation Results

Authors: Ulrike Bross, Annamaria Inzelt, Thomas Reiß

1st Edition

3790810924, 978-3790810929

More Books

Students also viewed these Accounting questions

Question

(1 point) Calculate 3 sin x cos x dx.

Answered: 1 week ago