Stanley Department Stores reported net income of $755,000 for the year ended December 31, 2024. Additional Information: Common shares outstanding at January 1, 2024 Incentive stock options (vested in 2023) outstanding throughout 2024 (Each option is exercisable for one common share at an exercise price of $22.00) During the year, the market price of Stanley's common stock averaged $26.40 per share. On August 30, Stanley sold 15,000 common shares. Stanley's only debt consisted of $34,000 of 10% short-term bank notes. The company's income tax rate is 25%. Required: Compute Stanley's basic and diluted earnings per share for the year ended December 31, 2024. 75,000 12,000 Note: Do not round intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Numerator Answer is complete but not entirely correct. Earnings per Share Denominator Basic Diluted $ 755,000 × 70,000X = $ $ 778,760 ×+ 82,000 x = $ 10.79 9.50
Stanley Department Stores reported net income of $755,000 for the year ended December 31, 2024. Additional Information: Common shares outstanding at January 1, 2024 Incentive stock options (vested in 2023) outstanding throughout 2024 (Each option is exercisable for one common share at an exercise price of $22.00) During the year, the market price of Stanley's common stock averaged $26.40 per share. On August 30, Stanley sold 15,000 common shares. Stanley's only debt consisted of $34,000 of 10% short-term bank notes. The company's income tax rate is 25%. Required: Compute Stanley's basic and diluted earnings per share for the year ended December 31, 2024. 75,000 12,000 Note: Do not round intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Numerator Answer is complete but not entirely correct. Earnings per Share Denominator Basic Diluted $ 755,000 × 70,000X = $ $ 778,760 ×+ 82,000 x = $ 10.79 9.50
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Gadubhai
Transcribed Image Text:Stanley Department Stores reported net income of $755,000 for the year ended December 31, 2024.
Additional Information:
Common shares outstanding at January 1, 2024
Incentive stock options (vested in 2023) outstanding throughout 2024
(Each option is exercisable for one common share at an exercise price of $22.00)
During the year, the market price of Stanley's common stock averaged $26.40 per share.
On August 30, Stanley sold 15,000 common shares.
Stanley's only debt consisted of $34,000 of 10% short-term bank notes.
The company's income tax rate is 25%.
Required:
Compute Stanley's basic and diluted earnings per share for the year ended December 31, 2024.
75,000
12,000
Note: Do not round intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10).
Numerator
Answer is complete but not entirely correct.
Earnings per Share
Denominator
Basic
Diluted
$ 755,000 ×
70,000X =
$
$ 778,760 ×+
82,000 x =
$
10.79
9.50
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