Compare financing alternatives Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $30 million gaming center in the coming year. They forecast they will earn $10,500,000 in operating income for the year and began the year with 3,500,000 shares of stock prior to financing the gaming center The financing alternatives to raise the funds are: a. Issue $30 million of 5% bonds at face amount or b. Issue 1 million additional shares of common stock for $30 per share Required: 1. Assuming bonds or shares of stock to finance the center are issued at the beginning of the year, complete the income statement for each alternative for the year. (Enter your answers in dollars not in millions. Round your "Earnings per Share" to 2 decimal places.) Operating income nterest expense (bonds only ncome before tax Income tax expense (40%) Net income Number of shares Earnings per share Record installment notes On January 1, 2018, Tropical Paradise borrows $39,000 by agreeing to a 6%, five-year note with the bank. The funds will be used to purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $915.92 are due at the end of each month with the first installment due on January 31, 2018. Record the issuance of the installment note payable and the first two monthly payments. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) 2 2