Current Ratio (Working Capital Ratio)

EPS Calculations

Solve BOTH EPS (Earnings Per Share) questions below

Don't use plagiarized sources. Get Your Custom Essay on
Current Ratio (Working Capital Ratio)
Just from $13/Page
Order Essay


Stanley Department Stores reported net income of $720,000 for the year ended December 31, 2021.
Additional Information:
  Common shares outstanding at Jan. 1, 202180,000  
  Incentive stock options (vested in 2020) outstanding throughout 202124,000  
  (Each option is exercisable for one common share at an exercise price of $37.50) 
 During the year, the market price of Stanley’s common stock averaged $45 per share. 
  On Aug. 30 Stanley sold 15,000 common shares. 
  Stanley’s only debt consisted of $50,000 of 10% short term bank notes. 
  The company’s income tax rate is 40%. 
Compute Stanley’s basic and diluted earnings per share for the year ended December 31, 2021


Information from the financial statements of Ames Fabricators, Inc., included the following:
 December 31
  2021  2020 
  Common shares 100,000  100,000 
  Convertible preferred shares
      (convertible into 32,000 shares of common)
 12,000  12,000 
  10% convertible bonds
      (convertible into 30,000 shares of common)
1,000,000 1,000,000 
     Ames’s net income for the year ended December 31, 2021, is $500,000. The income tax rate is 40%. Ames paid dividends of $5 per share on its preferred stock during 2021.
Compute basic and diluted earnings per share for the year ended December 31, 2021.

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.
error: Content is protected !!
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code GOODESSAY