Current Attempt in Progress

Blossom 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 $$1,738,000$ and income

from continuing operations for the fiscal year ended May $31,2026,$ was $$2,443,000.$ In both years, the company incurred a $9\%$ interest

expense on $$2,381,000$ of debt, an obligation that requires interest$-$only payments for $5$ years. The company experienced a loss from

discontinued operations of $$570,000$ in February $2026.$ The company uses a $20\%$ effective tax rate for income taxes.

The capital structure of Blossom Corporation on June $1,2024,$ consisted of $986,000$ shares of common stock outstanding

and $19,500$ 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 $1,2024,$ Blossom sold an additional $501,000$ shares of the common stock at $$20$ per share. Blossom distributed a $20\%$

stock dividend on the common shares outstanding on January $1,2025.$ On December $1,2025,$ Blossom was able to sell an

additional $805,000$ shares of the common stock at $$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 Blossom Corporation is a simple or complex capital structure.

eTextbook and Media $($b$)$

Determine the weighted$-$average number of shares that Blossom Corporation would use in calculating earnings per share for the

fiscal year ended:

Weighted$-$average number of shares

May $31,2025$

May $31,2026$

eTextbook and Media

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$($c$)$

Prepare, in good form, a comparative income statement, beginning with income from operations, for Blossom Corporation for the

fiscal years ended May $31,2025,$ and May $31,2026.$ This statement will be included in Blossom's annual report and should display

the appropriate earnings per share presentations. $($Round earnings per share to $2$ decimal places, e$.$g$.1\mathrm{.}55.)$ Prepare, in good form, a comparative income statement, beginning with income from operations, for Blossom Corporation for the

fiscal years ended May $31,2025,$ and May $31,2026.$ This statement will be included in Blossom's annual report and should display

the appropriate earnings per share presentations. $($Round earnings per share to $2$ decimal places, e$.$g$.1\mathrm{.}55.)$

BLOSSOM CORPORATION

Comparative Income Statement

For Fiscal Years Ended May $31,2025$ and $2026$

$

Earnings per share:

$

$

$

$$

$

$ Question $4$ of $5$

$

$

$$

$-$

$2$

$,$

$\frac{|l}{}$

$.]$

Earnings per share:

$

$

$$

$

$

eTextbook and Media

Attempts: $0$ of $5$ used