| Blossom Corporation is preparing the comparative financial statements to be included in the annual report to stockholders. Blossom employs a fiscal year ending May 31. Income from operations before income taxes for Blossom was $1,428,000 and $680,000, respectively, for fiscal years ended May 31, 2018 and 2017. Blossom experienced a loss from discontinued operations of $369,000 on March 3, 2018. A 40% combined income tax rate pertains to any and all of Blossom Corporations profits, gains, and losses. Blossoms capital structure consists of preferred stock and common stock. The company has not issued any convertible securities or warrants and there are no outstanding stock options. Blossom issued 40,700 shares of $100 par value, 6% cumulative preferred stock in 2014. All of this stock is outstanding, and no preferred dividends are in arrears. There were 964,800 shares of $1 par common stock outstanding on June 1, 2016. On September 1, 2016, Blossom sold an additional 381,600 shares of the common stock at $18 per share. Blossom distributed a 20% stock dividend on the common shares outstanding on December 1, 2017. These were the only common stock transactions during the past 2 fiscal years. |
