Anderson Steel Company began 2024 with 530,000 shares of common stock outstanding. On March 31, 2024, 100,000 new shares were sold at a price of $40 per share. The market price has risen steadily since that time to a high of $45 per share at December 31, No other changes in shares occurred during 2024, and no securities are outstanding that can become common stock. However, there are two agreements with officers of the company for future issuance of common stock. Both agreements relate to compensation arrangements reached in 2023. The first agreement grants to the company president a right to 38,000 shares of stock each year the closing market price is at least $43 The agreement begins in 2025 and expires in 2028. The second agreement grants to the controller a right to 43,000 shares of stock if she is still with the firm at the end of 2032 Net income for 2024 was $4,800,000. Required: Compute Anderson Steel Company's basic and diluted earnings per share for the year ended December 31, 2024 Note: Do not round intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Denominator Earnings per Share Numerator Basic Diluted
Anderson Steel Company began 2024 with 530,000 shares of common stock outstanding. On March 31, 2024, 100,000 new shares were sold at a price of $40 per share. The market price has risen steadily since that time to a high of $45 per share at December 31, No other changes in shares occurred during 2024, and no securities are outstanding that can become common stock. However, there are two agreements with officers of the company for future issuance of common stock. Both agreements relate to compensation arrangements reached in 2023. The first agreement grants to the company president a right to 38,000 shares of stock each year the closing market price is at least $43 The agreement begins in 2025 and expires in 2028. The second agreement grants to the controller a right to 43,000 shares of stock if she is still with the firm at the end of 2032 Net income for 2024 was $4,800,000. Required: Compute Anderson Steel Company's basic and diluted earnings per share for the year ended December 31, 2024 Note: Do not round intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Denominator Earnings per Share Numerator Basic Diluted
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Anderson Steel Company began 2024 with 530,000 shares of common stock outstanding.
On March 31, 2024, 100,000 hew shares were sold at a price of $40 per share.
• The market price has risen steadily since that time to a high of $45 per share at December 31,
•No other changes in shares occurred during 2024, and no securities are outstanding that can become common stock.
• However, there are two agreements with officers of the company for future issuance of common stock.
Both agreements relate to compensation arrangements reached in 2023.
• The first agreement grants to the company president a right to 38,000 shares of stock each year the closing market price is
at least $43.
• The agreement begins in 2025 and expires in 2028.
• The second agreement grants to the controller a right to 43,000 shares of stock if she is still with the firm at the end of
2032
Net income for 2024 was $4,800,000.
Required:
Compute Anderson Steel Company's basic and diluted earnings per share for the year ended December 31, 2024
Note: Do not round intermediate calculations. Enter your answers in thousands (i.e.. 10,000 should be entered as 10).
Numerator
Basic
Diluted
4
Denominator INNO
Earnings per Share
=
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