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Current Attempt in Progress Pearl Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31,

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Current Attempt in Progress Pearl Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31, 2020, and May 31, 2021. The income from operations for the fiscal year ended May 31,2020, was $1,753,000 and income from operations for the fiscal year ended May 31, 2021, was $2,478,000. In both years, the company incurred a 10%6 interest expense on $2,453,000 of debt, an obligation that requires interest-only payments for 5 years. The company experienced a loss from discontinued operations of $619,000 on February 2021 . The compary uses a 20% effective tax rate for income taxes. The capital structure of Peari Corporation on June 1, 2019, consisted of 1.023,000 shares of common stock outstanding and 20,800 shares of $50 par value, 6%, 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, 2019. Pearl sold an additional 484,000 shares of the common stock at $20 per share. Pearl distributed a 20% stock dividend on the common shares outstanding on January 1, 2020. On December 1, 2020, Pearl was able to sell an additional 816,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years. additional 816,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years. (a) Identify whether the capital structure at Pearl Corporation is a simple or complex capital structure: eTextbook and Media Attempts: 0 of 5 used Determine the weighted-average number of shares that Pearl Corporation would use in calculating earrings per share for the fiscal year ended: Prepare, in good form, a comparative income statement, besinning with income from operations. for Peari Corporationfor the fscal years ended May 31,2020, and May 31,2021. This statement will be included in Peart's annual report and should display the appropriate earnings per share presentations. (Round eamings per share to 2 decimal ploces eg $1.55. Determine the weighted average number of shares that Peart Copponation would use in cakulaticg earning per Mure tor the focalyear ended

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