For the year ended December 31, 2024, Norstar Industries reported net income of $955,000. At January 1, 2024, the company had 1,030,000 common shares outstanding. The following changes in the number of shares occurred during 2024: April 30 Sold 75,000 shares in a public offering May 24 Declared and distributed a 5% stock dividend June 1 Issued 84,000 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, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Answer is complete but not entirely correct. $ Numerator 955 ÷ Denominator Earnings per Share 1,170 = $ 0.82
For the year ended December 31, 2024, Norstar Industries reported net income of $955,000. At January 1, 2024, the company had 1,030,000 common shares outstanding. The following changes in the number of shares occurred during 2024: April 30 Sold 75,000 shares in a public offering May 24 Declared and distributed a 5% stock dividend June 1 Issued 84,000 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, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Answer is complete but not entirely correct. $ Numerator 955 ÷ Denominator Earnings per Share 1,170 = $ 0.82
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:For the year ended December 31, 2024, Norstar Industries reported net income of $955,000. At January 1, 2024, the company had
1,030,000 common shares outstanding. The following changes in the number of shares occurred during 2024:
April 30 Sold 75,000 shares in a public offering
May 24 Declared and distributed a 5% stock dividend
June 1 Issued 84,000 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, 2024.
Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (i.e., 10,000 should
be entered as 10). Round "Earnings per share" answer to 2 decimal places.
Answer is complete but not entirely correct.
$
Numerator
955
÷
Denominator
Earnings per
Share
1,170 =
$
0.82
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