At December 31, 2020, Albrecht Corporation had outstanding 388,000 shares of common stock and 10,000 shares of 9.5%, $100 par value cumulative, nonconvertible preferred stock. On May 31, 2021, Albrecht sold for cash 12,000 shares of its common stock. No cash dividends were declared for 2021. For the year ended December 31, 2021, Albrecht reported a net loss of $2,038,000. Required: Calculate Albrecht's net loss per share for the year ended December 31, 2021. (Enter your answers in thousands. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Numerator 1 1 Denominator = = Net Loss per Share
At December 31, 2020, Albrecht Corporation had outstanding 388,000 shares of common stock and 10,000 shares of 9.5%, $100 par value cumulative, nonconvertible preferred stock. On May 31, 2021, Albrecht sold for cash 12,000 shares of its common stock. No cash dividends were declared for 2021. For the year ended December 31, 2021, Albrecht reported a net loss of $2,038,000. Required: Calculate Albrecht's net loss per share for the year ended December 31, 2021. (Enter your answers in thousands. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Numerator 1 1 Denominator = = Net Loss per Share
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help the denominator is 395 and 4.92 per share
Transcribed Image Text:**Example Calculation of Net Loss Per Share**
At December 31, 2020, Albrecht Corporation had outstanding 388,000 shares of common stock and 10,000 shares of 9.5%, $100 par value cumulative, nonconvertible preferred stock. On May 31, 2021, Albrecht sold for cash 12,000 shares of its common stock. No cash dividends were declared for 2021. For the year ended December 31, 2021, Albrecht reported a net loss of $2,038,000.
**Required:**
Calculate Albrecht's net loss per share for the year ended December 31, 2021. (*Enter your answers in thousands. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.*)
**Calculation Table**
| Numerator | / | Denominator | = | Net Loss per Share |
|-----------|---|-------------|---|--------------------|
| | | | | |
To solve, calculate the adjusted shares after the new issuance and apply the formula for net loss per share:
1. Compute the new number of common shares by adjusting for the May issuance.
2. Subtract preferred dividends from the net loss to find the loss attributable to common shareholders.
3. Divide by the total shares to find the net loss per share.
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