Rustic Campsites, Incorporated, is trying to decide between the following two alternatives to finance its new $22 million gar center: a. Issue $22 million, 7% note. b. Issue 1 million shares of common stock for $22 per share. Required: 1. Assuming the note or shares of stock are issued at the beginning of the year, complete the income statement for each alternative. 2. Which alternative results in the higher earnings per share? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming the note or shares of stock are issued at the beginning of the year, complete the income statement for each alternative. Note: 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. Issue Bonds Issue Stock Operating income $ 9,700,000 $ 9,700,000 Interest expense (on note only) Income before tax Income tax expense (35%) Net income Number of shares $ 0 $ 0 2,700,000 3,700,000 Earnings per share (Net income + Number of shares) Show less