At December 31, 2015, Albrecht Corporation had outstanding 293,000 shares of com

Question

At December 31, 2015, Albrecht Corporation had outstanding 293,000 shares of common stock and 8,000 shares of 9.5%, $100 par value cumulative, nonconvertible preferred stock. On May 31, 2016, Albrecht sold for cash 12,000 shares of its common stock. No cash dividends were declared for 2016. For the year ended December 31, 2016, Albrecht reported a net loss of $854,000.

Calculate Albrecht's net loss per share for the year ended December 31, 2016. (Enter your answers in thousands. Negative amounts should be indicated by a minus sign.)

At December 31, 2015, Albrecht Corporation had outstanding 293,000 shares of common stock and 8,000 shares of 9.5%, $100 par value cumulative, nonconvertible preferred stock. On May 31, 2016, Albrecht sold for cash 12,000 shares of its common stock. No cash dividends were declared for 2016. For the year ended December 31, 2016, Albrecht reported a net loss of $854,000.

Explanation / Answer

Albrecht's Net Loss per share for the year ended December 31,2016

Outstanding common stock                   =      293000

less : sale of common stock                  =        12000

Balance of common stock                     =      281000

Net loss for the year                              =    $854000

Loss per common stock                        =    $854000 / 281000

                                                           =     $3.04 per common stock share.

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