Stanley Department Stores reported net income of $788,000 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 $23.50) During the year, the market price of Stanley's common stock averaged $28.20 per share. On August 30, Stanley sold 15,000 common shares. Stanley's only debt consisted of $37,000 of 10% short-term bank notes. The company's income tax rate is 25%. 95,000 24,000 Required: Compute Stanley'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).
Stanley Department Stores reported net income of $788,000 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 $23.50) During the year, the market price of Stanley's common stock averaged $28.20 per share. On August 30, Stanley sold 15,000 common shares. Stanley's only debt consisted of $37,000 of 10% short-term bank notes. The company's income tax rate is 25%. 95,000 24,000 Required: Compute Stanley'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).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Stanley Department Stores reported net income of $788,000 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 $23.50)
During the year, the market price of Stanley's common stock averaged $28.20 per share.
On August 30, Stanley sold 15,000 common shares.
Stanley's only debt consisted of $37,000 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.
Note: Do not round intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10).
Basic
Diluted
Numerator
+
+
+
Denominator = Earnings per Share
=
95,000
24,000
=
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