WileyPLUS Kieso, Intermediate Accounting, 17e Help | System Announcements CALCULATOR PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES ACC-371 TOPIC 02 Problem 16-06 (Part Level Submission) ASSIGNMENT Wildhorse 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 $1,741,000 and income from Exercise 15-02 continuing operations for the fiscal year ended May 31, 2021, was $2,605,000. In both years, the company incurred a 10% interest expense on $2,439,000 of debt, an obligation that requires interest-only payments for 5 years. The company experienced a loss from Exercise 15-04 discontinued operations of $591,000 on February 2021. The company uses a 20% effective tax rate for income taxes. Problem 15-03 Problem 15-04 The capital structure of Wildhorse Corporation on June 1, 2019, consisted of 957,000 shares of common stock outstanding and 19,600 shares of $50 par value, 6%, cumulative preferred stock. There were no preferred dividends in arrears, and the company had not issued Problem 15-07 any convertible securities, options, or warrants. Exercise 16-08 On October 1, 2019, Wildhorse sold an additional 505,000 shares of the common stock at $20 per share. Wildhorse distributed a 20% stock dividend on the common shares outstanding on January 1, 2020. On December 1, 2020, Wildhorse was able to sell an Exercise 16-11 additional 824,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years. Problem Level Submission) Problem 16-08 (a) Review Score Your answer is correct. Review Results by Study Objective Identify whether the capital structure at Wildhorse Corporation is a simple or complex capital structure. Simple Capital Structure SHOW SOLUTION LINK TO TEXT Attempts: 1 of 5 used (b) Determine the weighted-average number of shares that Wildhorse Corporation would use in calculating earnings per share for the fiscal year ended: Weighted-average number of shares (1) May 31, 2020 (2) May 31, 2021 LINK TO TEXT Attempts: 0 of 5 used SAVE FOR LATER SUBMIT ANSWER ( c ) The parts of this question must be completed in order. This part will be available when you complete the part above