Share
Explore BrainMass

LOCKE INTERTECHNOLOGY CORPORATION: infer from equity acts

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.)

Attachments

Solution Preview

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