Requirement 8. The Lexington Company wants to expand and is considering options for raising additional cash. The company estimates net income before the expansion of $240,000 in 2019 and that expansion will provide additional operating income of $62,000 in 2019 . The company intends to sell the shares of treasury stock, so issued shares for the analysis rather than current shares outstanding. Compare these options, assuming a 40% income tax rate: Plan 1: Issue18,000 additional shares of common stock for $28 per share. Plan 2: Issue $140,000in 10-year, 10% bonds payable. Which option will contribute more net income in 2019?Which provides the highest EPS?

First complete the table below.

I will provide the table and following contextual information in the following photos.

griest First, complete the table below. (Complete all answer boxes. Enter a "0" for any zero amounts. Round the earnings per Plan 1 Plan 2 Net income before new project Expected income on the new project before interest and income tax expenses Less: Interest expense Project income before income tax Less: Income tax expense Project net income Net income with new project Earnings per share with new project Enter any number in the edit fields and then click Check Answer 2018. Assume that $16,508 of the mortgage payable is due within the next Review the adjusted trial balance you prepared above The Lexington Company Balance Sheet December 31, 2018 Assets Current Assets Cash $ 632.078 Merchandise Inventory 132.000 Total Current Assets $ 764,078 Property. Plant, and Equipment Land 120,000 Building 40,000 Store Fixdures 7,200 46,860 Less: Accumulated Depreciation 166 860 Total Property, Plant, and Equipment 930,938 Total Assets Liabilities (340) $ Current Liabilities $ 361,883 $ Stockholders' Equity Paid in Capital: 300,000 shares authorized 40,000 shares issued 39.650 shares outstanding Common Stock-S1 Par Value. Paid-in Capital in Excess of Par-Common Paid-in Capital from Treasury Stock Transactions Total Paid-in Capital Retained Earings Treasury Stock-Common 350 shares at cost Total Stockholders' Equity Total Liabilities and Stockholders' Equity 40,000 520,000 2.200 $ 562 200 10.705 3,850 5 569.055 930,938 5 Requirement 7. Evaluate the company's success for the first quarter of operations by calculating the following ratios. The market price of th Income Statement For Quarter Ended December 31, 2018 Net Sales Revenue $ 450,000 Cost of Goods Sold 270,000 Gross Profit 180,000 42,900 4,542 785 Operating Expenses Salaries Expense Payroll Tax Expense Utilities Expense Depreciation Expense Warranty Expense Total Operating Expenses Operating Income Other Income and (Expenses); 340 40,500 89,067 90.933 (2.128) (2.128) Interest Expense Total Other Income and (Expenses) Income before Income Taxes Income Tax Expense 88,805 (39.000) 49,805 Net Income