The cumulative preferred shares outstanding can be converted to a total of 86,600 common shares. The bonds can be converted to a total of 89,900 common shares. All the preferred shares, bonds, and stock options were outstanding for the entire 2021 fiscal year. The average market price of the common shares in the 2021 fiscal year was $25. Required: 1. Calculate basic earnings per share for Marathon Company for the year ended May 31, 2021 2. Calculate diluted earnings per share for Marathon Company for the year ad Mau21 2091

The cumulative preferred shares outstanding can be converted to a total of 86,600 common shares. The bonds can be converted to a total of 89,900 common shares. All the preferred shares, bonds, and stock options were outstanding for the entire 2021 fiscal year. The average market price of the common shares in the 2021 fiscal year was $25. Required: 1. Calculate basic earnings per share for Marathon Company for the year ended May 31, 2021 2. Calculate diluted earnings per share for Marathon Company for the year ad Mau21 2091

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Stanley Department Stores reported net income of $881,000 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 $26.50) During the year, the market price of Stanley's common stock averaged $31.80 per share. On Aug. 30, Stanley sold 15,000 common shares. Stanley's only debt consisted of $43,000 of 108 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 Answer is complete but not entirely correct. Numerator 1 Denominator = Earnings per Share 130,000 = S 136,000 = $ $ 881,000/ $ 881,000 125,000 36,000 6.78 6.48
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