Problem 16-6 Stellar Corporation is preparing the comparative financial statements for the annual report to i shareholders for fiscal years ended May 31, 2017, and May 31, 2018. The income from operations for the fiscal year t7 37 000 t bli tt i nt f The ratiancad l di ti tionf18 000 ru o18 Th 09 effective tax rate for income taxes. The capital structure of Stellar Corporation on June 1, 2016, consisted of 967,000 shares of common stock outstanding and 19,300 shares of $50 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, 2016, Stellar sold an additional 517,000 shares of the common stock at $20 per share. Stellar distributed a 20 % stock dividend on the common shares outstand ing December 1, 2017, Stellar was able to sell an additional 821,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years. n January 1, 2017, On Your answer is correct. Identify whether the capital structure at Stellar Corporation is a simple or complex capital structure. Simple Capital Structure SHOW SOLUTION SHOW ANSWER LINK TO TEXT xYour answer is incorrect. Try again. Determine the weighted-average number of shares that Stellar Corporation would use in calculating earnings per share for the fiscal year ended: Weighted-average number of shares (1) May 31, 2017 906,200 (2) May 31, 2018 1,605,600 Your answer is partaly correct. Iry agaln. Prepare, in good form, a comparative income statement, beginning with income from operations, for Stellar Corporation for the fiscal years ended May 31, 2017, and May 31, 2018. This statement will be included in Stellar's annual report and should display the appropriate earnings per share presentations. (Round earnings per share to 2 decimal places, e.g. $1.55.) STELLAR CORPORATION Comparative Income Statement For Fiscal Years Ended May 31, 2017 and 2018 2017 2018 Income From Operations 1818000 2617000 232400 232400 Interest Expense Income Before Taxes 1585600 2384600 634240 953840 Income Taxes Income From Continuing Operations 951360 1430760 Loss From Discontinued Operations 370800 580560 1430760 Net Income/(Loss) Earnings per share: Income From Continuing Operations 56 1.51 Loss From Discontinued Operations 23 31 1.51 Net Income/(Loss) Problem 16-6 Stellar Corporation is preparing the comparative financial statements for the annual report to i shareholders for fiscal years ended May 31, 2017, and May 31, 2018. The income from operations for the fiscal year t7 37 000 t bli tt i nt f The ratiancad l di ti tionf18 000 ru o18 Th 09 effective tax rate for income taxes. The capital structure of Stellar Corporation on June 1, 2016, consisted of 967,000 shares of common stock outstanding and 19,300 shares of $50 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, 2016, Stellar sold an additional 517,000 shares of the common stock at $20 per share. Stellar distributed a 20 % stock dividend on the common shares outstand ing December 1, 2017, Stellar was able to sell an additional 821,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years. n January 1, 2017, On Your answer is correct. Identify whether the capital structure at Stellar Corporation is a simple or complex capital structure. Simple Capital Structure SHOW SOLUTION SHOW ANSWER LINK TO TEXT xYour answer is incorrect. Try again. Determine the weighted-average number of shares that Stellar Corporation would use in calculating earnings per share for the fiscal year ended: Weighted-average number of shares (1) May 31, 2017 906,200 (2) May 31, 2018 1,605,600 Your answer is partaly correct. Iry agaln. Prepare, in good form, a comparative income statement, beginning with income from operations, for Stellar Corporation for the fiscal years ended May 31, 2017, and May 31, 2018. This statement will be included in Stellar's annual report and should display the appropriate earnings per share presentations. (Round earnings per share to 2 decimal places, e.g. $1.55.) STELLAR CORPORATION Comparative Income Statement For Fiscal Years Ended May 31, 2017 and 2018 2017 2018 Income From Operations 1818000 2617000 232400 232400 Interest Expense Income Before Taxes 1585600 2384600 634240 953840 Income Taxes Income From Continuing Operations 951360 1430760 Loss From Discontinued Operations 370800 580560 1430760 Net Income/(Loss) Earnings per share: Income From Continuing Operations 56 1.51 Loss From Discontinued Operations 23 31 1.51 Net Income/(Loss)
