Item $5$

$1\mathrm{.}66$ points

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$3$

Item $5$

Comparative Statements of Shareholders$$ Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December $31,2022,2023,$ and $2024.$

LOCKE INTERTECHNOLOGY CORPORATION Statements of Shareholders' Equity For the Years Ended December $31,2022,2023,$ and $2024($$ in millions$)$ Preferred Stock, $$10$ par Common Stock, $$1$ par Additional Paid$-$in Capital Retained Earnings Total Shareholders' Equity Balance at January $1,2022$ $ $0$ $ $75$ $ $525$ $ $1,890$ $ $2,490$ Sale of preferred shares $11470481$ Sale of common shares, $7/1108090$ Cash dividend, preferred $(3)(3)$ Cash dividend, common $(17)(17)$ Net income $300300$ Balance at December $31,202211851,0752,1703,341$ Retirement of common shares, $4/1(8)(35)(20)(63)$ Cash dividend, preferred $(3)(3)$ Cash dividend, common $(21)(21)3-$for$-2$ split effected in the form of a common stock dividend, $8/1238\mathrm{.}5(38\mathrm{.}5)$ Net income $400400$ Balance at December $31,202311115\mathrm{.}51,001\mathrm{.}52,5263,65410\%$ common stock dividend, $5/111\mathrm{.}55120(131\mathrm{.}55)$ Sale of common shares, $9/133740$ Cash dividend, preferred $(2)(2)$ Cash dividend, common $(28)(28)$ Net income $424424$ Balance at December $31,2024$ $ $11$ $ $130\mathrm{.}05$ $ $1,158\mathrm{.}5$ $ $2,788\mathrm{.}45$ $ $4,088$

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 $31,2022,2023,$ and $2024.$ No potential common shares were outstanding during any of the periods shown.

Note: Do not round intermediate calculations. Enter your answers in millions rounded to $2$ decimal places $($i$.$e$.,5,550,000$ should be entered as $5\mathrm{.}55).$

Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December $31,2022,2023,$ and $2024.$

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 $31,2022,2023,$ and $2024.$ No potential common shares were outstanding during any of the periods shown.

Note: Do not round intermediate calculations. Enter your answers in millions rounded to $2$ decimal places $($i$.$e$.,5,550,000$ should be entered as $5\mathrm{.}55).$