Answer:
Ainsworth, Inc.
1. Net loss per share for the year ended December 31, 2021:
= $0.211
2. Per share amount of income from continuing operations
= $0.422
3. Comparative Income Statements:
2021 2020
Net income (continuing operations) $240 million $420 million
Net income (including
discontinued operations) ($120 million) $0
Weighted-average common stock shares 558 million 560 million
EPS (continuing operations) $0.43 $0.75
EPS (including discontinued operations) ($0.21) $0
Explanation:
a) Data and Calculations:
December 31, 2020:
Outstanding common stock = 560 million shares
Outstanding 7%, Cumulative non-convertible preferred stock = 15 million shares at $100 par value
April 30, 2021:
Treasury stock purchased = 30 million
June 12, 2021:
5% Common Stock dividend = 26.5 million shares(530 million * 5%)
August 31, 2021:
Treasury stock sold = 12 million
December 31, 2021: Outstanding common stock = 568.5 million
Therefore, net income from continuing operations = $240 million
After-tax loss from discontinued operations = $360 million
December 31, 2021 reported net loss = ($120 million)
1. Net loss per share for the year ended December 31, 2021:
= $120 million/568.5 million = $0.211
2. Per share amount of income from continuing operations = $240 million/568.5 million = $0.422
3. Comparative Income Statements:
2021 2020
Net income (continuing operations) $240 million $420 million
Net income (including
discontinuing operations) ($120 million) $0
Weighted-average common stock shares 558 million 560 million
EPS (continuing operations) $0.43 $0.75
EPS (including discontinued operations) ($0.21) $0
Weighted-average of Common Stock shares:
January 1, 2021: Outstanding 560 million * 12/12 = 560 million
April 30, 2021: Treasury stock 30 million * 8/12 = -20 million
June 12, 2021: Stock dividend 26.5 million *6.5/12 14 million
August 31, 2021: Treasury stock sold 12 million *4/12 4 million
December 31, 2021: Weighted-average outstanding = 558 million
