Answer:
1)
Reported net loss $ (195)
Add: Cumulative preference dividend (31*$100*7%) $ (217)
Total loss $ (412)
Calculation of weighted average number of shares
Common stock outstanding on 12/31/17 (720*105%) 756.00
Treasury stock (-30*105%*8/12) (21.00)
Issuance (12*4/12) 4.00
Weighted average number of shares 739.00
Numerator / Denominator = Net loss per share
$ (412) / 739.00 = $ (0.56)
2)
Calculation of Net Income
Reported net loss $ (195)
Add : loss from discontinuing operation $ 510
Income from continuing operation $ 315
Cumulative preference dividend $ (217)
Net Income $ 98
Numerator / Denominator = Net loss per share
$ 98 / 739.00 = $ 0.13
3)
Comparative income statement 2018 2017
Earning(Loss) per common share:
Income from $ 0.13 $0.71 ($540/(720*105%))
continuing operation = $ 0.71
Loss from discontinued $ (0.69)
operation
Net Income (Loss) $ (0.56) $ 0.71
