Required information [The following information applies to the questions displayed below.] Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $16 million gaming center: a. Issue $16 million, 7% note. b. Issue 1 million shares of common stock for $16 per share. I Required: 1. Assuming the note or shares of stock are issued at the beginning of the year, complete the income statement for each alternative. (Enter your answers 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.) Operating income Interest expense (note only) Income before tax Income tax expense (35%) Net income Number of shares Earnings per share (Net income/ # of shares) Issue Note Issue Stock $ 9,100,000 $9,100,000 $ 0 $ 2,100,000 0 3,100,000