Question 1 Sheridan Corporation, a publicly traded company, is preparing the comparative financial statements to be included in the annual report to shareholders. Sheridan's fiscal year ends May 31. The following information is available. 3. 4. 5. 6. Income from operations before income tax for Sheridan was $1,400,000 and $1,800,000, respectively, for the fiscal years ended May 31, 2021, and 2020. Sheridan experienced a loss from discontinued operations of $400,000 from a business segment disposed of on March 3, 2021. A 20% combined income tax rate applies to all of Sheridan Corporation's profits, gains, and losses. Sheridan's capital structure consists of preferred shares and common shares. The company has not issued any convertible securities or warrants and there are no outstanding stock options. Sheridan issued 130,000 of $10 par value, 5% cumulative preferred shares in 2013. All of these shares are outstanding, and no preferred dividends are in arrears. There were 1.60 million common shares outstanding on June 1, 2019. On September 1, 2019, Sheridan sold an additional 400,000 common shares at $18 per share. Sheridan distributed a 20% stock dividend on the common shares outstanding on December 1, 2020. These were the only common share transactions during the past two fiscal years. x Your answer is incorrect. Try again. Determine the weighted average number of common shares that would be used in calculating earnings per share on the current comparative income statement for: 1. The year ended May 31, 2021 2. The year ended May 31, 2020 Determine the weighted average number of common shares that would be used in calculating earnings per share on the current comparative income statement for: 1. The year ended May 31, 2021 2. The year ended May 31, 2020 LINK TO TEXT LINK TO TEXT LINK TO TEXT ZYour answer is partially correct. Try again. Prepare a comparative income statement for the years ended May 31, 2021, and 2020. Assume that Sheridan discloses all applicable earnings per share data on the face of the income statement. (Round Earnings Per Share answers to 2 decimal places, e.g. 15.25.) SHERIDAN CORPORATION Comparative Income Statement For the Years Ended May 31, 2021 and 2020 2021 2020 Income from Continuing Operations Before Income Tax v 1,400,000 1,800,000 280,000 360,000 home from conuinggerations 1,120,000 1,440,000 Loss from Discontinued Operations, Net of Tax 320,000 encome 800,000 1.440,000 Earnings per common share: a 2000 2021 Johnny & Sons, Inc. All Riahes Reserved. A Division of John Wiley & Sons, Inc. Version 4.24.21 Prepare a comparative income statement for the years ended May 31, 2021, and 2020. Assume that Sheridan discloses all applicable earnings per share data on the face of the income statement. (Ro Earnings Per Share answers te 2 decimal places, e.g. 15.25.) SHERIDAN CORPORATION Comparative Income Statement For the Years Ended Nay 31, 2021 and 2020 2021 Income from Continuing Operations Before Income Tax 1,400,000 v Income Tax 280,000 2020 X $ 1,800,000 360,000 Income from Continuing Operations FIX 1,120,000 1,440,000 Loss from Discontinued Operations, Net of Tax 320,000 T Net Income (Less 800,000 1.440,000 Earnings per common share: TX Income from Continuing Operations 0.37 0.61 Loss from Discontinued Operations, Net of Tex 0.37 X 1 Net Income / (Loss) 0.37 0.61