View Policies Show Attempt History Current Attempt in Progress Novak Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31, 2020, and May 31, 2021. The income from operations for the fiscal year ended May 31, 2020, was $1,858,000 and income from continuing operations for the fiscal year ended May 31, 2021, was $2,575,000. In both years, the company incurred a 11% interest expense on $2,281,000 of debt, an obligation that requires interest-only payments for 5 years. The company experienced a loss from discontinued operations of $605,000 on February 2021. The company uses a 20% effective tax rate for income taxes. The capital structure of Novak Corporation on June 1, 2019, consisted of 1,000,000 shares of common stock outstanding and 20,500 shares of $50 par value, 6%, 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, 2019, Novak sold an additional 484,000 shares of the common stock at $20 per share. Novak distributed a 20% stock dividend on the common shares outstanding on January 1, 2020. On December 1, 2020, Novak was able to sell an additional 801,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years. Prepare, in good form, a comparative income statement, beginning with income from operations, for Novak Corporation for the fiscal years ended May 31, 2020, and May 31, 2021. This statement will be included in Novaks annual report and should display the appropriate earnings per share presentations. (Round earnings per share to 2 decimal places, e.g. $1.55.)

NOVAK CORPORATION Comparative Income Statement For Fiscal Years Ended May 31, 2020 and 2021 2020 2021

Income From Operations $ 1,858,000 $ $2,575,000

Interest Expense (600,500)

Income Before Taxes 1,858,000 1,974,500

Income Taxes 250,910 250,910

Income From Continuing Operations 1,607,090 1,723,590

Loss From Discontinued Operations 321,418 689,436

Net Income / (Loss) $ 1,285,672 $ 1,034,154

Earnings per share:

Income From Continuing Operations $ 1,607,090 $ 1,723,590 Loss From Discontinued Operations ________ ________

Net Income / (Loss) $ $ _________ ________