1.On December 31, 2012, Ainsworth, Inc., had 600 million shares of common stock outstanding. Twenty million shares of 8%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2, 2013. On April 30, 2013, Ainsworth purchased 30 million shares of its common stock as treasury stock. Twelve million treasury shares were sold on August 31. Ainsworth issued a 5% common stock dividend on June 12, 2013. No cash dividends were declared in 2013. For the year ended December 31, 2013, Ainsworth reported a net loss of $140 million, including an after tax extraordinary loss of $400 million from a litigation settlement.
Required:
1. Determine Ainsworth's net loss per share for the year ended December 31, 2013.
2. Determine the per share amount of income or loss from continuing operations for the year ended December 31, 2013.
3. Prepare an EPS presentation that would be appropriate to appear on Ainsworth's 2013 and 2012 comparative income statements. Assume EPS was reported in 2012 as $.75, based on net income (no extraordinary items) of $450 million and a weighted average number of common shares of 600 million.