Question

On Dec. 31, 2023, Ainsworth Inc. had 850 Million shares of common stock outstanding.

34 million shares of 6%, $100 par value cumulative, nonconvertible preferred stock were sold on Jan 2, 2024.

On April 30, 2024, Ainsworth purchased 50 million shares of its common stock as treasury stock.

20 million treasury shares were sold on August 31.

Ainsworth issued a 4% common stock dividend on June 12, 2024.

No cash dividends were declared in 2024.

For the year ended Dec. 31, 2024, Ainsworth reported a net loss of $210 million, including an after-tax loss from discontinued operations of $540 million.

Compute Ainsworth's net loss per share for the year ended December 31, 2024.
Compute the per share amount of income or loss from continuing operations for the year ended Dec. 31, 2024.

Answer 1

100.000 and doral are fire

Answer 2

1. Net Loss Per Share for the Year Ended December 31, 2024: The net loss per share for Ainsworth Inc. for the year ended December 31, 2024, is
`\(-\$0.25\)`.

2. Per Share Amount of Income or Loss from Continuing Operations for the Year Ended December 31, 2024: The per share amount of loss from continuing operations for the year ended December 31, 2024, is $0.39.

3. EPS Presentation for Ainsworth's 2024 and 2023 Comparative Income Statements:

- For the year 2024:

- Net Loss per Share: -$0.25

- Loss from Continuing Operations per Share: $0.39

- For the year 2023:

- Net Income per Share: $0.70

1. Compute Ainsworth's Net Loss Per Share for the Year Ended December 31, 2024

Weighted-average Number of Common Shares Outstanding Calculation:

• Initial common shares: 850 million
• Treasury shares purchased: 50 million on April 30, 2024, affecting 8 months of the year.
• Treasury shares sold: 20 million on August 31, 2024, affecting 4 months of the year.
• Common stock dividend: 4% increase in shares.

Calculation steps:

1Adjustment for Treasury Shares Purchased:

`\[850 - (50 * (8)/(12)) = 850 - 33.33 = 816.67 \text{ million}\]`

Adjustment for Treasury Shares Sold:

`\[816.67 + (20 * (4)/(12)) = 816.67 + 6.67 = 823.34 \text{ million}\]`

Adjustment for Stock Dividend:

`\[823.34 * (1 + (4)/(100)) = 823.34 * 1.04 = 856.27 \text{ million}\]`

Net Loss Per Share:

Net loss =
`\(-\$210\)` million

`\[(-210)/(856.27) = -\$0.245 \text{ (rounded to 3 decimal places)}\]`

2. Compute the Per Share Amount of Income or Loss from Continuing Operations:

• Net Loss:
  `\(-\$210\)` million
• Loss from Discontinued Operations:
  `\(-\$540\)` million
• Income from Continuing Operations: Net Loss - Loss from Discontinued Operations =
  `\(-210 - (-540)\) = \(\$330\)` million

Calculation steps:

Loss per Share from Continuing Operations:

`\[(330)/(856.27) = \$0.385 \text{ (rounded to 3 decimal places)}\]`

3. Prepare an EPS Presentation for 2024 and 2023 Comparative Income Statements

For 2023:

- Net Income: $595 million

- Weighted-average Number of Common Shares Outstanding: 850 million

- EPS:
`\[(595)/(850) = \$0.70\]`

For 2024:

- Net Loss Per Share (from step 1):
`\(-\$0.25\)` (rounded to 2 decimal places)

- Loss from Continuing Operations Per Share (from step 2):
`\(\$0.39\)` (rounded to 2 decimal places)

Therefore, the EPS presentation would be:

- 2024:

- Net Loss Per Share:
`\(-\$0.25\)`

- Loss from Continuing Operations Per Share:
`\(\$0.39\)`

- 2023:

- Net Income Per Share:
`\(\$0.70\)`