How do I determine the weighted average of shares for the fiscal year ended May 31, 2021?

Problem 16-06 Buffalo Corporation is preparing the comparative nancial statements for the annual report to its shareholders for scal years ended May 31, 2020, and May 31, 2021. The income from operations for the scal year ended May 31, 2020, was $1,889,000 and income from continuing operations for the fiscal year ended May 31, 2021, was $2,530,000. In both years, the company incurred a 9% interest expense on $2,449,000 of debt, an obligation that requires interest-only payments for 5 years. The company experienced a loss from discontinued operations of $606,000 on February 2021. The company uses a 20% effective tax rate for income taxes. The capital structure of Buffalo Corporation on June 1, 2019, consisted of 962,000 shares of common stock outstanding and 20,500 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, Buffalo sold an additional 511,000 shares of the common stock at $20 per share. Buffalo distributed a 20% stock dividend on the common shares outstanding on January 1, 2020. On December 1, 2020, Buffalo was able to sell an additional 760,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two scal years. Your answer is correct. Identify whether the capital structure at Buffalo Corporation is a simple or complex capital structure. v SHOW SOLUTION SHOW ANSWER LINK TO TEXT / Your answer is partially correct. Try again. Determine the weightedaverage number of shares that Buffalo Corporation would use in calculating earnings per share for the scal year ended: Weighted-average number of shares (1) May 31, 2020 1563200 Kl