Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $20 million gaming center:

a. Issue $20 million of 6% bonds at face amount. b. Issue 1 million shares of common stock for $20 per share.

21. PLEASE COMPLETE TABLE

Required: 1. Assuming bonds or shares of stock are issued at the beginning of the year, complete the income statement for each alternative. (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000). Round your "Earnings per Share" to 2 decimal places. Round your "Earnings per Share" to 2 decimal places.)

	ISSUE BONDS	ISSUE STOCK
OPERATING INCOME	$9,500,000	$9,500,000
INTEREST EXPENSE (BONDS ONLY)
INCOME BEFORE TAX
INCOME TAX EXPENSE (30%)
NET INCOME
NUMBER OF SHARES	2,500,000	3,500,000
EARNINGS PER SHARE