For the year ended December 31, 2021, Norstar Industries reported net income of $655,000. At January...

For the year ended December 31, 2021, Norstar Industries reported net income of $655,000. At January 1, 2021, the company had 900,000 ordinary shares outstanding. The following changes in the number of shares occurred during 2021: April 30 Sold 60,000 shares in a public offering. May 24 Declared and distributed a bonus issue of 5%. June 1 Issued 72,000 shares as part of the consideration for the purchase of assets from a subsidiary. Required: Compute Norstar's earnings per share for the year ended December 31, 2021. (Enter your answers in thousands.)

Expert Solution

In the question there is not mentioned any method of computing EPS. as per the data provided in the question I present the calculation of EPS in two common and popular methon of EPS which shown in the financial statements.

1. Earning per share (basic ) and 2. Earning per share (Diluted)

Please follow the notes and working to understand the values

and all the values are written in thousands (ie. '000) as mentioned in the question, except the answer of EPS

ekkarill92 answered 2 years ago

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