Comparative Statements of Shareholders’ Equity for Locke


Question Description:

30

Jul 20, 2014. Comparative Statements of Shareholders’ Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2011, 2012, and 2013. LOCKE INTERTECHNOLOGY CORPORATION Statements of Shareholders’ Equity For the Years Ended Dec. 31, 2011, 2012, and 2013 ($ in millions) Preferred Common Total Stock, Stock, Additional Retained Shareholders’ $10 par $1 par Paid-in Capital Earnings Equity Balance at January 1, 2011 60 570 1,908 2,538 Sale of preferred shares 6 560 566 Sale of common shares, 7/1 5 89 94 Cash dividend, preferred (4 ) (4 ) Cash dividend, common (17 ) (17 ) Net income 390 390 Balance at December 31, 2011 6 65 1,219 2,277 3,567 Retirement of common shares, 4/1 (4 ) (44 ) (29 ) (77 ) Cash dividend, preferred (4 ) (4 ) Cash dividend, common (21 ) (21 ) 3-for-2 split effected in the form of a common stock dividend, 8/12 30.5 (30.5 ) Net income 490 490 Balance at December 31, 2012 6 91.5 1,144 2,713 3,955 10% common stock dividend, 5/1 9.15 90 (99.15 ) Sale of common shares, 9/1 3 35 38 Cash dividend, preferred (4 ) (4 ) Cash dividend, common (37 ) (37 ) Net income 442 442 Balance at December 31, 2013 6 103.65 1,269.5 3,014.85 4,394 Required: Infer from the statements the events and transactions that affected Locke Intertechnology Corporation’s shareholders’ equity and compute earnings per share as it would have appeared on the income statements for the years ended December 31, 2011, 2012, and 2013. No potential common shares were outstanding during any of the periods shown. (Do not round intermediate calculations and round your final answers to 2 decimal places.) jackflash
posted a question · Jul 20, 2014 at 12:43pm

Answer

30