On December 31, 2023, Ainsworth, Incorporated 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, 2024. • On April 30, 2024, 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, 2024. • No cash dividends were declared in 2024. • For the year ended December 31, 2024, 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, 2024. 2. Compute the per share amount of income or loss from continuing operations for the year ended December 31, 2024. 3. Prepare an EPS presentation that would be appropriate to appear on Ainsworth's 2024 and 2023 comparative income statements. Assume EPS was reported in 2023 as $0.70, based on net income (no discontinued operations) of $595 million and a weighted-average number of common shares of 850 million. Complete this question by entering your answers in the tabs below. Req 1 and 2 1. 1. Compute Ainsworth's net loss per share for the year ended December 31, 2024. 2. Compute the per share amount of income or loss from continuing operations for the year ended December 31, 2024. Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Negative amounts should be indicated by a minus sign. Req 3 Numerator Denominator Numerator + Denominator Net Loss Per Share Income or (Loss) from Continuing Operations Per Share < Req 1 and 2 Req 3 > Show less A
On December 31, 2023, Ainsworth, Incorporated 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, 2024. • On April 30, 2024, 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, 2024. • No cash dividends were declared in 2024. • For the year ended December 31, 2024, 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, 2024. 2. Compute the per share amount of income or loss from continuing operations for the year ended December 31, 2024. 3. Prepare an EPS presentation that would be appropriate to appear on Ainsworth's 2024 and 2023 comparative income statements. Assume EPS was reported in 2023 as $0.70, based on net income (no discontinued operations) of $595 million and a weighted-average number of common shares of 850 million. Complete this question by entering your answers in the tabs below. Req 1 and 2 1. 1. Compute Ainsworth's net loss per share for the year ended December 31, 2024. 2. Compute the per share amount of income or loss from continuing operations for the year ended December 31, 2024. Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Negative amounts should be indicated by a minus sign. Req 3 Numerator Denominator Numerator + Denominator Net Loss Per Share Income or (Loss) from Continuing Operations Per Share < Req 1 and 2 Req 3 > Show less A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On December 31, 2023, Ainsworth, Incorporated 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, 2024.
On April 30, 2024, 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, 2024.
Required:
1. Compute Ainsworth's net loss per share for the year ended December 31, 2024.
2. Compute the per share amount of income or loss from continuing operations for the year ended December 31, 2024.
3. Prepare an EPS presentation that would be appropriate to appear on Ainsworth's 2024 and 2023 comparative income
statements. Assume EPS was reported in 2023 as $0.70, based on net income (no discontinued operations) of $595 million and
a weighted-average number of common shares of 850 million.
• No cash dividends were declared in 2024.
• For the year ended December 31, 2024, Ainsworth reported a net loss of $210 million, including an after-tax loss from
discontinued operations of $540 million.
Req 1 and 2
1.
Complete this question by entering your answers in the tabs below.
2.
1. Compute Ainsworth's net loss per share for the year ended December 31, 2024.
2. Compute the per share amount of income or loss from continuing operations for the year ended December 31, 2024.
Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Negative amounts should be indicated by a minus sign.
Numerator
Req 3
Numerator +
Denominator
Denominator
Net Loss Per Share
Income or (Loss) from
Continuing Operations Per
Share
< Req 1 and 2
Req 3 >
Show less
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