Infer from the statements the events and transactions that affected Locke Intert
ID: 2468815 • Letter: I
Question
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, 2014, 2015, and 2016. No potential common shares were outstanding during any of the periods shown. (Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)
Year Numerator / Denominator = Earnings Per Share
2014 / =
2015 / =
2016 / =
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, 2014, 2015, and 2016. No potential common shares were outstanding during any of the periods shown. (Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)
Year Numerator / Denominator = Earnings Per Share
2014 / =
2015 / =
2016 / =
Explanation / Answer
Events affecting Shareholders equity
Year 2014
Year 2015
Year 2016
Earnings per share can be computed as
Amounts are in Million 2014 2015 2016 Net Income 390 490 442 Less Preference Dividend 4 4 4 Earnings available for Common stock holders 386 486 438 Outstanding common stock at end ( in Millions) 65 91.5 103.65 Outstanding common stock at end ( in Numbers) 65 91.5 103.65 (Par Value = $ 1) Earnings per share ($ per common stock) 5.94 5.31 4.23 Earnings available / Outstanding common stock