For the year ended December 31, 2021, Norstar Industries reported net income of $950,000. At January 1, 2021, the company had 1,010,000 common shares outstanding. The following changes in the number of shares occurred during 2021 Apr. 30 Sold 70,000 shares in a public offering. May 24 Declared and distributed a 5% stock dividend. June 1 Issued 78,000 shares as part of the consideration for the purchase of assets from a subsidiary. Required: Compute Norstar's earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Round "EPS" answer to 2 decimal places. Do not round intermediate calculations.) Numerator $ 950,000/ Denominator Earnings per Share
For the year ended December 31, 2021, Norstar Industries reported net income of $950,000. At January 1, 2021, the company had 1,010,000 common shares outstanding. The following changes in the number of shares occurred during 2021 Apr. 30 Sold 70,000 shares in a public offering. May 24 Declared and distributed a 5% stock dividend. June 1 Issued 78,000 shares as part of the consideration for the purchase of assets from a subsidiary. Required: Compute Norstar's earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Round "EPS" answer to 2 decimal places. Do not round intermediate calculations.) Numerator $ 950,000/ Denominator Earnings per Share
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:For the year ended December 31, 2021, Norstar Industries reported net income of $950,000. At January 1, 2021, the company had
1,010,000 common shares outstanding. The following changes in the number of shares occurred during 2021
Apr. 30 Sold 70,000 shares in a public offering.
May 24 Declared and distributed a 5% stock dividend.
June 1 Issued 78,000 shares as part of the consideration for the purchase of assets from a subsidiary.
Required:
Compute Norstar's earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Round "EPS"
answer to 2 decimal places. Do not round intermediate calculations.)
Numerator
$
950,000/
Denominator
Earnings per Share
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