On December 31, 2010, Ainsworth, Inc., had 600 million shares of common stock outstanding. Twenty million shares

Question:

On December 31, 2010, Ainsworth, Inc., had 600 million shares of common stock outstanding. Twenty million shares of 8%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2, 2011. On April 30, 2011, Ainsworth purchased 30 million shares of its common stock as treasury stock. Twelve million treasury shares were sold on August 31. Ainsworth issued a 5% common stock dividend on June 12, 2011. No cash dividends were declared in 2011. For the year ended December 31, 2011, Ainsworth reported a net loss of $140 million, including an after-tax extraordinary loss of $400 million from a litigation settlement.

Required:

1. Determine Ainsworth's net loss per share for the year ended December 31, 2011.

2. Determine the per share amount of income or loss from continuing operations for the year ended December 31, 2011.

3. Prepare an EPS presentation that would be appropriate to appear on Ainsworth's 2011 and 2010 comparative income statements. Assume EPS was reported in 2010 as $.75, based on net income (no extraordinary items) of $450 million and a weighted-average number of common shares of 600 million.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...