On December 31, 2017, Ainsworth, Inc., had 800 million shares of common stock outstanding. Twenty five...

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On December 31, 2017, Ainsworth, Inc., had 800 million shares ofcommon stock outstanding. Twenty five million shares of 6%, $100par value cumulative, nonconvertible preferred stock were sold onJanuary 2, 2018. On April 30, 2018, Ainsworth purchased 30 millionshares of its common stock as treasury stock. Twelve milliontreasury shares were sold on August 31. Ainsworth issued a 5%common stock dividend on June 12, 2018. No cash dividends weredeclared in 2018. For the year ended December 31, 2018, Ainsworthreported a net loss of $165 million, including an after-tax lossfrom discontinued operations of $450 million. Required: 1. ComputeAinsworth's net loss per share for the year ended December 31,2018. 2. Compute the per share amount of income or loss fromcontinuing operations for the year ended December 31, 2018. 3.Prepare an EPS presentation that would be appropriate to appear onAinsworth's 2018 and 2017 comparative income statements. Assume EPSwas reported in 2017 as $0.65, based on net income (no discontinuedoperations) of $520 million and a weighted-average number of commonshares of 800 million.

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Part 1 Ainsworths net loss per share for the year ended December 31 2018 038 Numerator Basic EPS Net loss 165 million Preferred dividends 150 6 x 100 x 25 million Denominator Basic See Answer

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