urrent Attempt in Progress Bonita Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May $31,2025,$ and May $31,2026.$ The income from operations for the fiscal year ended May $31,2025,$ was $\backslash$$$1,818,000$ and income from continuing operations for the fiscal year ended May $31,2026,$ was $\backslash$$$2,424,000.$ In both years, the company incurred a $10\backslash \%$ interest expense on $\backslash (\backslash$$ $2,424,000\backslash )$ of debt, an obligation that requires interest$-$only payments for $5$ years. The company experienced a loss from discontinued operations of $\backslash (\backslash$$ $575,000\backslash )$ in February $2026.$ The company uses a $\backslash (20\backslash \%\backslash )$ effective tax rate for income taxes. The capital structure of Bonita Corporation on June $1,2024,$ consisted of $1,037,000$ shares of common stock outstanding and $19,100$ shares of $\backslash (\backslash$$ $50\backslash )$ par value, $\backslash (6\backslash \%\backslash ),$ cumulative preferred stock. There were no preferred dividends in arrears, and the company had not issued any convertible securities$,$ options, or warrants. On October $1,2024,$ Bonita sold an additional $511,000$ shares of the common stock at $\backslash$$$20$ per share. Bonita distributed a $20\backslash \%$ stock dividend on the common shares outstanding on January $1,2025.$ On December $1,2025,$ Bonita was able to sell an additional $785,000$ shares of the common stock at $\backslash$$$22$ per share. These were the only common stock transactions that occurred during the $2$ fiscal years. $($a$)$ Your answer is correct. Identify whether the capital structure at Bonita Corporation is a simple or complex capital structure. Simple Capital Structure eTextbook and Media $($b$)$ Question $4$ of $5$

$3\mathrm{.}5/7$

$($b$)$

$-$ Your answer is partially correct.

Determine the weighted$-$average number of shares that Bonita Corporation would use in calculating earnings per share for the fiscal year ended:

Weighted$-$average number of shares

$1.$ May $31,2025$

$\backslash$begin$\{$tabular$\}\{|$r$|\}$

$\backslash$hline $\backslash (1,653,200\backslash )\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$2.$ May $31,2026\backslash (\backslash$square $\backslash )$

eTextbook and Media

Save for Later

Attempts: $2$ of $5$ used

Submit Answer

$($c$)$

Prepare, in good form, a comparative income statement, beginning with income from operations, for Bonita Corporation for the fiscal years ended May $31,2025,$ and May $31,2026.$ This statement will be included in Bonita's annual report and should display the appropriate earnings per share presentations. $($Round earnings per share to $2$ decimal places, eg$.1\mathrm{.}55.)($c$)$

Prepare, in good form, a comparative income statement, beginning with income from operations, for Bonita Corporation for the fiscal years ended May $31,2025,$ and May $31,2026.$ This statement will be included in Bonita's annual report and should display the appropriate earnings per share presentations. $($Round earnings per share to $2$ decimal places, e$.$g$.1\mathrm{.}55.)$BONITA CORPORATION Comparative Income Statement For Fiscal Years Ended May $31,2025$ and $2026\backslash$$$\backslash$$$\backslash$$ $\backslash$$