Melton Corporation is preparing the comparative financial statements for the annual reports to its shareholders for fiscal years ended May 31, 2017 and May 31, 2018. The capital structure of Melton Corporation on 1 June 2016 consisted of 1 million shares of common stock outstanding and 20,000 shares of $50 par value, 6%, cumulative preferred stock. The company had not issued any convertible securities, options or warrants. On October 1, 2016, Melton sold an additional 500,000 shares of the common stock at $20 per share. Melton distributed a 20% stock dividend on the common shares outstanding on January 1, 2017. On December 1, 2017, Melton was able to sell an additional 800,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years. (Please note that Melton's fiscal year runs from Jun 1 to May 31). a) Identify whether the capital structure of Melton Corporation is a simple or complex capital structure and explain why. b) Determine the weighted-average number of shares that Melton Corporation would use in calculating earnings per share for the fiscal year ended: i. May 31, 2017 ii. May 31, 2018 Hint: Since the fiscal year runs from Jun 1 to May 1 start by identifying which transactions affect the number of shares outstanding in each fiscal year and make a table like we did in class. Melton Corporation is preparing the comparative financial statements for the annual reports to its shareholders for fiscal years ended May 31, 2017 and May 31, 2018. The capital structure of Melton Corporation on 1 June 2016 consisted of 1 million shares of common stock outstanding and 20,000 shares of $50 par value, 6%, cumulative preferred stock. The company had not issued any convertible securities, options or warrants. On October 1, 2016, Melton sold an additional 500,000 shares of the common stock at $20 per share. Melton distributed a 20% stock dividend on the common shares outstanding on January 1, 2017. On December 1, 2017, Melton was able to sell an additional 800,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years. (Please note that Melton's fiscal year runs from Jun 1 to May 31). a) Identify whether the capital structure of Melton Corporation is a simple or complex capital structure and explain why. b) Determine the weighted-average number of shares that Melton Corporation would use in calculating earnings per share for the fiscal year ended: i. May 31, 2017 ii. May 31, 2018 Hint: Since the fiscal year runs from Jun 1 to May 1 start by identifying which transactions affect the number of shares outstanding in each fiscal year and make a table like we did in class