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    LOCKE INTERTECHNOLOGY CORPORATION: infer from equity acts

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    Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2009, 2010, and 2011.
    LOCKE INTERTECHNOLOGY CORPORATION
    Statements of Shareholders' Equity
    For the Years Ended Dec. 31, 2009, 2010, and 2011
    ($ in millions)
    Preferred Common Total
    Stock, Stock, Additional Retained Shareholders'
    $10 par $1 par Paid-in Capital Earnings Equity
    Balance at January 1, 2009 55 495 1,878 2,428
    Sale of preferred shares 10 470 480
    Sale of common shares, 7/1 15 135 150
    Cash dividend, preferred (1) (1)
    Cash dividend, common (16) (16)
    Net income 294 294
    Balance at December 31, 2009 10 70 1,100 2,155 3,335
    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 33 (33)
    Net income 384 384
    Balance at December 31, 2010 10 99 1,031 2,498 3,638
    10% common stock dividend, 5/1 10 100 (110)
    Sale of common shares, 9/1 3 31 34
    Cash dividend, preferred (2) (2)
    Cash dividend, common (22) (22)
    Net income 416 416
    Balance at December 31, 2011 10 112 1,162 2,980 4,064

    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, 2009, 2010, and 2011. No potential common shares were outstanding during any of the periods shown. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

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    Transactions discernible from statement of equity:
    - They issues preferred and common stock in 2009
    - They declared a dividend for preferred and common ...

    Solution Summary

    Your tutorial gives you five events discernible from the equity statements and computes earnings per share in excel for you, including computing the weighted average common shares.

    $2.19

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