Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $29 million gaming center:

a. Issue $29 million of 7% bonds at face amount. b. Issue 1 million shares of common stock for $29 per share.

Required 1. Assuming bonds or shares of stock are issued at the beginning of the year, complete the income statement for each alternative. (Ente Round your "Earnings per Share" to 2 decimal places.) Issue Bonds Issue Stock $ 10,400,00010.400,000 Operating income Interest expense (bonds only) Income before tax Income tax expense (35%) Net income Number of shares Eamings per share ,400.000 400,000