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Oriole Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 3 1 , 2 0

Oriole 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 $1,827,000 and income
from operations for the fiscal year ended May 31,2021, was $2,536,000. In both years, the company incurred a 10% interest expense
on $2,376,000 of debt, an obligation that requires interest-only payments for 5 years. The company experienced a loss from
discontinued operations of $585,000 on February 2021. The company uses a 20% effective tax rate for income taxes.
The capital structure of Oriole Corporation on June 1,2019, consisted of 1,018,000 shares of common stock outstanding
and 19,200 shares of $50 par value, 7%, 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, Oriole sold an additional 507,000 shares of the common stock at $20 per share. Oriole distributed a 20% stock
dividend on the common shares outstanding on January 1,2020. On December 1,2020, Oriole was able to sell an
additional 817,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred
during the two fiscal years.
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