Comparative Statements of Shareholders' Equity for Locke Inter technology Corporation were reported as follows for the fiscal years ending December 31, 2016, 2017, and 2018.

Required:
Infer from the statements the events and transactions that affected Locke Inter technology Corporation's shareholders' equity and compute earnings per share as it would have appeared on the income statements for the years ended December 31, 2016, 2017, and 2018. No potential common shares were outstanding during any of the periods shown.

Transcribed Image Text:

LOCKE INTERTECHNOLOGY CORPORATION Statements of Shareholders' Equity For the Years Ended Dec. 31, 2016, 2017, and 2018 ($ In milllons) Preferred Stock, $10 par CommonAdditional Stock, $1 par S 55 Pald-In Retained Shareholders Earnings Equity $2,428 480 90 Balance at January 1, 2016 S 495 470 81 $1,878 Sale of preferred shares Sale of common shares, 7/1 Cash dividend, preferred Cash dividend, common Net income 10 (16) 290 (16) 1,046 (36) 290 3,271 (60) Balance at December 31, 2016 10 64 2,151 Retirement of common shares, 4/1 Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the form of a (20) (20) common stock dividend, 8/12 30 (30) Net income 380 2,490 (99) 380 3,570 34 Balance at December 31, 2017 90 980 90 31 10 10% common stock dividend, 5/1 Sale of common shares, 9/1 Cash dividend, preferred Cash dividend, common Net income (22) 412 (22) 412 Balance at December 31, 2018 $10 $102 $1,101 $2,779 $3,992