Stanley Department Stores reported net income of $986,000 for the year ended December 31, 2024. Additional Information: Common shares outstanding at January 1, 2024 150,000 Incentive stock options (vested in 2023) outstanding throughout 2024 36,000 (Each option is exercisable for one common share at an exercise price of $29.00) During the year, the market price of Stanley’s common stock averaged $34.80 per share. On August 30, Stanley sold 15,000 common shares. Stanley’s only debt consisted of $48,000 of 10% short-term bank notes. The company’s income tax rate is 25%.
Stanley Department Stores reported net income of $986,000 for the year ended December 31, 2024. Additional Information: Common shares outstanding at January 1, 2024 150,000 Incentive stock options (vested in 2023) outstanding throughout 2024 36,000 (Each option is exercisable for one common share at an exercise price of $29.00) During the year, the market price of Stanley’s common stock averaged $34.80 per share. On August 30, Stanley sold 15,000 common shares. Stanley’s only debt consisted of $48,000 of 10% short-term bank notes. The company’s income tax rate is 25%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Stanley Department Stores reported net income of $986,000 for the year ended December 31, 2024.
Additional Information:
| Common shares outstanding at January 1, 2024 | 150,000 |
|---|---|
| Incentive stock options (vested in 2023) outstanding throughout 2024 | 36,000 |
| (Each option is exercisable for one common share at an exercise price of $29.00) | |
| During the year, the market price of Stanley’s common stock averaged $34.80 per share. | |
| On August 30, Stanley sold 15,000 common shares. | |
| Stanley’s only debt consisted of $48,000 of 10% short-term bank notes. | |
| The company’s income tax rate is 25%. |
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