On December 31, 2017, Ainsworth, Inc., had 800 million shares of common stock outstanding. Thirty two million shares of 5%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2, 2018. On April 30, 2018, 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, 2018. No cash dividends were declared in 2018. For the year ended December 31, 2018, Ainsworth reported a net loss of $200 million, including an after-tax loss from discontinued operations of $520 million. Required: 1. Compute Ainsworth's net loss per share for the year ended December 31, 2018. 2. Compute the per share amount of income or loss from continuing operations for the year ended December 31, 2018. 3. Prepare an EPS presentation that would be appropriate to appear on Ainsworth's 2018 and 2017 comparative income statements. Assume EPS was reported in 2017 as $0.72, based on net income (no discontinued operations) of $576 million and a weighted-average number of common shares of 800 million.
On December 31, 2017, Ainsworth, Inc., had 800 million shares of common stock outstanding. Thirty two million shares of 5%, $100 par value cumulative, nonconvertible
Required:
1. Compute Ainsworth's net loss per share for the year ended December 31, 2018.
2. Compute the per share amount of income or loss from continuing operations for the year ended December 31, 2018.
3. Prepare an EPS presentation that would be appropriate to appear on Ainsworth's 2018 and 2017 comparative income statements. Assume EPS was reported in 2017 as $0.72, based on net income (no discontinued operations) of $576 million and a weighted-average number of common shares of 800 million.
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