Swifty Corporation is preparing the comparative financial statements to be included in the annual report to stockholders. Swifty employs a fiscal year ending May 31. Income from operations before income taxes for Swifty was $1,308,000 and $703,000, respectively, for fiscal years ended May 31, 2018 and 2017. Swifty experienced a loss from discontinued operations of $429,000 on March 3, 2018. A 40% combined income tax rate pertains to any and all of Swifty Corporations profits, gains, and losses. Swiftys capital structure consists of preferred stock and common stock. The company has not issued any convertible securities or warrants and there are no outstanding stock options. Swifty issued 39,600 shares of $100 par value, 6% cumulative preferred stock in 2014. All of this stock is outstanding, and no preferred dividends are in arrears. There were 1,065,600 shares of $1 par common stock outstanding on June 1, 2016. On September 1, 2016, Swifty sold an additional 367,200 shares of the common stock at $16 per share. Swifty distributed a 20% stock dividend on the common shares outstanding on December 1, 2017. These were the only common stock transactions during the past 2 fiscal years.

Determine the weighted-average number of common shares that would be used in computing earnings per share on the current comparative income statement for:

The year ended May 31, 2017.

Starting with income from operations before income taxes, prepare a comparative income statement for the years ended May 31, 2018 and 2017. The statement will be part of Swifty Corporations annual report to stockholders and should include appropriate earnings per share presentation. (Round earnings per share to 2 decimal places, e.g. $2.55.)