Reference no: EM13214751
Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2011, 2012, and 2013.
LOCKE INTERTECHNOLOGY CORPORATION
Statements of Shareholders' Equity
For the Years Ended Dec. 31, 2011, 2012, and 2013
($ in millions)
Preferred Common Total
Stock, Stock, Additional Retained Shareholders'
$10 par $1 par Paid-in Capital Earnings Equity
Balance at January 1, 2011 60 570 1,908 2,538
Sale of preferred shares 6 560 566
Sale of common shares, 7/1 5 89 94
Cash dividend, preferred (4 ) (4 )
Cash dividend, common (17 ) (17 )
Net income 390 390
Balance at December 31, 2011 6 65 1,219 2,277 3,567
Retirement of common shares, 4/1 (4 ) (44 ) (29 ) (77 )
Cash dividend, preferred (4 ) (4 )
Cash dividend, common (21 ) (21 )
3-for-2 split effected in the form of
a common stock dividend, 8/12 30.5 (30.5 )
Net income 490 490
Balance at December 31, 2012 6 91.5 1,144 2,713 3,955
10% common stock dividend, 5/1 9.15 90 (99.15 )
Sale of common shares, 9/1 3 35 38
Cash dividend, preferred (4 ) (4 )
Cash dividend, common (37 ) (37 )
Net income 442 442
Balance at December 31, 2013 6 103.65 1,269.5 3,014.85 4,394
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, 2011, 2012, and 2013. No potential common shares were outstanding during any of the periods shown.
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