Comparative Statements of Shareholders Equity for Locke Intertechnology Corporation were reported as follows for the...
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Accounting
Comparative Statements of Shareholders Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021.
LOCKE INTERTECHNOLOGY CORPORATION
Statements of Shareholders' Equity
For the Years Ended Dec. 31, 2019, 2020, and 2021
($ in millions)
Preferred Stock, $10 par
Common Stock, $1 par
Additional Paid-in Capital
Retained Earnings
Total Shareholders' Equity
Balance at January 1, 2019
$
55
$
495
$
1,878
$
2,428
Sale of preferred shares
10
470
480
Sale of common shares, 7/1
9
81
90
Cash dividend, preferred
(1
)
(1
)
Cash dividend, common
(16
)
(16
)
Net income
290
290
Balance at December 31, 2019
10
64
1,046
2,151
3,271
Retirement of common shares, 4/1
(4
)
(36
)
(20
)
(60
)
Cash dividend, preferred
(1
)
(1
)
Cash dividend, common
(20
)
(20
)
3-for-2 split effected in the form of a common stock dividend, 8/12
30
(30
)
Net income
380
380
Balance at December 31, 2020
10
90
980
2,490
3,570
10% common stock dividend, 5/1
9
90
(99
)
Sale of common shares, 9/1
3
31
34
Cash dividend, preferred
(2
)
(2
)
Cash dividend, common
(22
)
(22
)
Net income
412
412
Balance at December 31, 2021
$
10
$
102
$
1,101
$
2,779
$
3,992
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, 2019, 2020, and 2021. No potential common shares were outstanding during any of the periods shown. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)
Year
Numerator
/
denominator
=
earning per share
2019
2020
2021
Answer & Explanation
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