Melton Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31, 2014, and May 31, 2015. The income from operations for each year was $1,859,000 and $2,546,000, respectively. In both years, the company incurred a 11% interest expense on $2,498,000 of debt, an obligation that requires interest-only payments for 5 years. The company experienced a loss of $699,700 from a fire in its Scotsland facility in February 2015, which was determined to be an extraordinary loss. The company uses a 40% effective tax rate for income taxes.

The capital structure of Melton Corporation on June 1, 2013, consisted of 1,065,600 shares of common stock outstanding and 39,800 shares of $54 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, 2013, Melton sold an additional 482,400 shares of the common stock at $20 per share. Melton distributed a 20% stock dividend on the common shares outstanding on January 1, 2014. On December 1, 2014, Melton was able to sell an additional 829,200 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years.

Prepare, in good form, a comparative income statement, beginning with income from operations, for Melton Corporation for the fiscal years ended May 31, 2014, and May 31, 2015. This statement will be included in Meltons annual report and should display the appropriate earnings per share presentations.

MELTON CORPORATION Comparative Income Statement For Fiscal Years Ended May 31, 2014 and 2015 2014 2015 Earnings per share