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.

Determine the weighted-average number of common shares that would be used in computing earnings per share on the current comparative income statement for:

				Weighted-average number of common shares
(1)		The year ended May 31, 2017.
(2)		The year ended May 31, 2018.

Starting with income from operations before income taxes, prepare a comparative income statement for the years ended May 31, 2018 and 2017. The statement will be part of Blossom Corporations annual report to stockholders and should include appropriate earnings per share presentation. (Round earnings per share to 2 decimal places, e.g. $2.55.)

BLOSSOM CORPORATION Comparative Income Statement For the Years Ended May 31, 2018 and 2017
	2018	2017
DividendsExpensesIncome Before Extraordinary ItemIncome From Continuing OperationsIncome From Operations Before Income TaxesIncome TaxesLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, June 1Retained Earnings, May 31RevenuesTotal ExpensesTotal Revenues	$	$
DividendsExpensesIncome Before Extraordinary ItemIncome From Continuing OperationsIncome From Operations Before Income TaxesIncome TaxesLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, June 1Retained Earnings, May 31RevenuesTotal ExpensesTotal Revenues
DividendsExpensesIncome Before Extraordinary ItemIncome From Continuing OperationsIncome From Operations Before Income TaxesIncome TaxesLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, June 1Retained Earnings, May 31RevenuesTotal ExpensesTotal Revenues
DividendsExpensesIncome Before Extraordinary ItemIncome From Continuing OperationsIncome From Operations Before Income TaxesIncome TaxesLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, June 1Retained Earnings, May 31RevenuesTotal ExpensesTotal Revenues
DividendsExpensesIncome Before Extraordinary ItemIncome From Continuing OperationsIncome From Operations Before Income TaxesIncome TaxesLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, June 1Retained Earnings, May 31RevenuesTotal ExpensesTotal Revenues	$	$
Earnings per share
Dividends Expenses Income Before Extraordinary Item Income From Continuing Operations Income From Operations Before Income Taxes Income Taxes Loss From Discontinued Operations Net Income / (Loss) Retained Earnings, June 1 Retained Earnings, May 31 Revenues Total Expenses Total Revenues	$	$
Dividends Expenses Income Before Extraordinary Item Income From Continuing Operations Income From Operations Before Income Taxes Income Taxes Loss From Discontinued Operations Net Income / (Loss) Retained Earnings, June 1 Retained Earnings, May 31 Revenues Total Expenses Total Revenues
DividendsExpensesIncome Before Extraordinary ItemIncome From Continuing OperationsIncome From Operations Before Income TaxesIncome TaxesLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, June 1Retained Earnings, May 31RevenuesTotal ExpensesTotal Revenues	$	$