16-6 Problem 16-6 Melton Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31, 2014, and May 31, 2015. The income from operations for each year was $1,823,000 and $2,558,000, respectively. In both years, the company incurred a 10% interest expense on $2,462,000 of debt, an obligation that requires interest-only payments for 5 years. The company experienced a loss of $648,700 from a fire in its Scotsland facility in February 2015, which was determined to be an extraordinary loss The company uses a 45% effective tax rate for income taxes , is E The capital structure of Melton Corporation on June 1, 2013, consisted of 982,800 shares of common stock outstanding and 26,600 shares of $51 par value, 5%, cumulative preferred stock. There were no preferred dividends in arrears, and the company had not issued any convertible securities, options, or warrants. On October 1 2013, Melton sold an additional 589,200 shares of the common stock at $20 per share. Melton distributed a 20% stock dividend on the common shares outstanding on January 1, 2014. On December 1, 2014, Melton was able to sell an additional 793,200 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years. Identify whether the capital structure at Melton Corporation is a simple or complex capital structure Determine the weighted-average number of shares that Melton Corporation would use in calculating earnings per share for the fiscal year ended eighted-average number of shares (1) May 31, 2014 (2) May 31, 2015