Stanley Department Stores reported net income of $801,000 for the year ended December 31, 2021. Additional Information: Common shares outstanding at Jan. 1, 2021 Incentive stock options (vested in 2020) outstanding throughout 2021 (Each option is exercisable for one common share at an exercise price of $24.00) During the year, the market price of Stanley's common stock averaged $28.80 per share. On Aug. 30, Stanley sold 15,000 common shares. Stanley's only debt consisted of $38,000 of 10% short-term bank notes. The company's income tax rate is 25%. 100,000 24,000 Required: Compute Stanley's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Do not round intermediate calculations)
Stanley Department Stores reported net income of $801,000 for the year ended December 31, 2021. Additional Information: Common shares outstanding at Jan. 1, 2021 Incentive stock options (vested in 2020) outstanding throughout 2021 (Each option is exercisable for one common share at an exercise price of $24.00) During the year, the market price of Stanley's common stock averaged $28.80 per share. On Aug. 30, Stanley sold 15,000 common shares. Stanley's only debt consisted of $38,000 of 10% short-term bank notes. The company's income tax rate is 25%. 100,000 24,000 Required: Compute Stanley's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Do not round intermediate calculations)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
K119.
Transcribed Image Text:Stanley Department Stores reported net income of $801,000 for the year ended December 31, 2021.
Additional Information:
Common shares outstanding at Jan. 1, 2021
Incentive stock options (vested in 2020) outstanding throughout 2021
(Each option is exercisable for one common share at an exercise price of $24.00)
During the year, the market price of Stanley's common stock averaged $28.80 per share.
On Aug. 30, Stanley sold 15,000 common shares.
Stanley's only debt consisted of $38,000 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, 2021. (Enter your answers in thousands. Do
not round intermediate calculations)
Basic
Diluted
Numerator
801
801
S
S
Answer is complete but not entirely correct.
Denominator
Earnings per Share
7.63
5.13
1
/
1
11
100,000
24,000
105✔ =
S
156 = S
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