Stanley Department Stores reported net income of $863,000 for the year ended December 31, 2021. Additional...

Stanley Department Stores reported net income of $863,000 for the year ended December 31, 2021.

Additional Information:


Common shares outstanding at Jan. 1, 2021	120,000
Incentive stock options (vested in 2020) outstanding throughout 2021	36,000
(Each option is exercisable for one common share at an exercise price of $26.00)
During the year, the market price of Stanley’s common stock averaged $31.20 per share.
On Aug. 30, Stanley sold 15,000 common shares.
Stanley’s only debt consisted of $42,000 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)

Expert Solution

ekkarill92 answered 2 years ago

Stanley Department Stores reported net income of $881,000 for the year ended December 31, 2021. Additional...

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 125,000 Incentive stock options (vested in 2020) outstanding throughout 2021 36,000 (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 10% short-term...

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...

Perry Corporation reported net income of $136,200 for the year ended December 31, 2021. January 1...

Perry Corporation reported net income of $136,200 for the year ended December 31, 2021. January 1 balances in accounts receivable and accounts payable were $28,800 and $27,400, respectively. Year-end balances in these accounts were $30,500 and $22,700, respectively. Assuming that all relevant information has been presented, Perry's cash flows from operating activities would be: Multiple Choice $137,900. $76,900. $142,600. $129,800.

For the year ended December 31, 2018, Norstar Industries reported net income of $655,000. At January...

For the year ended December 31, 2018, Norstar Industries reported net income of $655,000. At January 1, 2018, the company had 900,000 common shares outstanding. The following changes in the number of shares occurred during 2018: Apr. 30 Sold 60,000 shares in a public offering. May 24 Declared and distributed a 5% stock dividend. 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...

For the fiscal year ended December 31, 2019, Nicholas Corporation reported net income of $600,000 and...

For the fiscal year ended December 31, 2019, Nicholas Corporation reported net income of $600,000 and had 900,000 common shares outstanding from the beginning to the end of the year. On May 1, 2019, Nicholas issued 5% convertible bonds. Each $1,000 bond is convertible into 120 common shares. The total proceeds were $1,000,000 at par and were recognized in the liability and equity components using the residual value method, measuring the liability component first, at the present value of the...

For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $1,052,000. Selected...

For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $1,052,000. Selected information for 2021 from Fidelity’s records follows: Interest income on municipal governmental bonds $ 108,000 Depreciation claimed on the 2021 tax return in excess of depreciation on the income statement 132,000 Carrying amount of depreciable assets in excess of their tax basis at year-end 240,000 Warranty expense reported on the income statement 64,000 Actual warranty expenditures in 2021 54,000 Fidelity's income tax rate is...

For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $1,048,000. Selected...

For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $1,048,000. Selected information for 2021 from Fidelity’s records follows: Interest income on municipal governmental bonds $ 104,000 Depreciation claimed on the 2021 tax return in excess of depreciation on the income statement 128,000 Carrying amount of depreciable assets in excess of their tax basis at year-end 232,000 Warranty expense reported on the income statement 62,000 Actual warranty expenditures in 2021 52,000 Fidelity's income tax rate is...

Blimp Co. reported net income of P1,000,000 for the year ended December 31, 2020. Upon further...

Blimp Co. reported net income of P1,000,000 for the year ended December 31, 2020. Upon further inspection of its records, the entity failed to recognized prepaid insurance of P12,000; accrued expense and revenue of P2,000 and P4,000, respectively. An advance payment of P10,000 from a customer was also entirely recognized as a liability. It was found out that Blimp has already earned 30% of it. Lastly, sales from a customer amounting to P20,000 was incorrectly recognized as P2,000. 1. Following...

For the year ended December 31, 2017, Transformers Inc. reported the following: Net Income $305068 Preferred...

For the year ended December 31, 2017, Transformers Inc. reported the following: Net Income $305068 Preferred dividends paid 54210 Common dividends paid 9619 Unrealized holding loss, net of tax 3543 Retained Earnings, beginning balance 389503 Common Stock 177628 Accumulated Other Comprehensive Income, beginning balance 22896 What would Transformers report as the ending balance of Retained Earnings?

The Massoud Consulting Group reported net income of $1,354,000 for its fiscal year ended December 31, 2011.

The Massoud Consulting Group reported net income of $1,354,000 for its fiscal year ended December 31, 2011. In addition, during the year the company experienced a foreign currency translation adjustment gain of $240,000 and had unrealized losses on investment securities of $80,000. The company's effective tax rate on all items affecting comprehensive income is 30%. Each component of other comprehensive income is displayed net of tax. Required: Prepare a combined statement of income and comprehensive income for 2011, beginning with...

Question