On December 31, 2017, Ainsworth, Inc., had 720 million shares of common stock outstanding. Thirty one million shares of 7%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2, 2018. On April 30, 2018, 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, 2018. No cash dividends were declared in 2018. For the year ended December 31, 2018, Ainsworth reported a net loss of $195 million, including an after-tax loss from discontinued operations of $510 million.Required:1. Compute Ainsworth's net loss per share for the year ended December 31, 2018.2. Compute the per share amount of income or loss from continuing operations for the year ended December 31, 2018.3. Prepare an EPS presentation that would be appropriate to appear on Ainsworth's 2018 and 2017 comparative income statements. Assume EPS was reported in 2017 as $0.75, based on net income (no discontinued operations) of $540 million and a weighted-average number of common shares of 720 million.Req 1 and 2

Compute Ainsworth's net loss per share for the year ended December 31, 2018. To compute the net loss per share for Ainsworth, we need to determine the weighted average number of common shares outstanding during the year. Here's how to do it:

1. Begin with shares outstanding at the beginning of the year: 720 million shares. 2. No adjustment for the preferred stock since preferred shares don't affect the common stock outstanding. 3. Treasury stock purchase on April 30, 2018, reduces the shares outstanding. Since the purchase happens 4 months into the year, the remaining 8 months are weighted: 720 million - 30 million = 690 million shares (for the remaining 8 months of the year). 4. Selling 12 million treasury shares on August 31, 2018, increases the shares outstanding. Because August 31 is 8 months into the year, these shares contribute to the last 4 months: 690 million + 12 million = 702 million shares (for the last 4 months of the year). 5. A 5% common stock dividend on June 12, 2018, will increase the shares outstanding. Since stock dividends are retroactively applied to all shares outstanding for the year, the number increases by 5%: 720 million * 1.05 = 756 million shares.

weighted average: - 720 million (for 4 months / 12 months) + 690 million (for 4 months / 12 months) + 702 million (for 4 months / 12 months) - Weighted average = (720 * 4/12) + (690 * 4/12) + (702 * 4/12) = 240 + 230 + 234 = 704 million shares

Total net loss for the year: $195 million - Weighted average shares outstanding: 704 million - Net loss per share = Total Net Loss / Weighted Average Shares

Net loss per share = -$195 million / 704 million = -$0.28 per share

Net loss per share = -$195 million / 704 million = -$0.28 per share

- Loss from continuing operations = Total net loss - Loss from discontinued operations - Loss from continuing operations = (-$195 million) - (-$510 million) - Loss from continuing operations = $510 million - $195 million = $315 million

Using the same weighted average number of shares from Req 1 (704 million shares), we calculate the per-share amount of loss from continuing operations as follows:

- Loss from continuing operations per share = Loss from continuing operations / Weighted Average Shares - Loss from continuing operations per share = $315 million / 704 million - Loss from continuing operations per share = $0.45 per share

This represents a $0.45 loss per share from continuing operations.