Question: please help solve this problem. thank you. Bramble Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years


Bramble 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 $1,827,000 and income from continuing operations for the fiscal year ended May 31, 2021, was $2,536,000. In both years, the company incurred a 10% interest expense on $2,376,000 of debt, an obligation that requires interest-only payments for 5 years. The company experienced a loss from discontinued operations of $585,000 on February 2021. The company uses a 20% effective tax rate for income taxes. The capital structure of Bramble Corporation on June 1, 2019, consisted of 1,018,000 shares of common stock outstanding and 19.200 shares of $50 par value, 7%, 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, Bramble sold an additional 507,000 shares of the common stock at $20 per share. Bramble distributed a 20% stock dividend on the common shares outstanding on January 1, 2020. On December 1, 2020, Bramble wis able to sell an additional 817,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years. Determine the weighted average number of shares that Bramble Corporation would use in calculating earnings per share for the fiscal year ended: Weighted average number of shares (1) May 31, 2020 1245200 (2) May 31, 2021 1239600 eTextbook and Media Your Answer Correct Answer - Your answer is partially correct. Prepare, in good form, a comparative income statement, beginning with income from operations, for Bramble Corporation for the fiscal years ended May 31, 2020, and May 31, 2021. This statement will be included in Bramble's annual report and should display the appropriate earnings per share presentations. (Round earnings per share to 2 decimal places, es. $1.55) BRAMBLE CORPORATION Comparative Income Statement For Fiscal Years Ended May 31, 2020 and 2021 2020 2021 BRAMBLE CORPORATION Comparative Income Statement For Fiscal Years Ended May 31, 2020 and 2021 2020 2021 Income From Operations 1.827,000 2.536,000 Interest Expense -237600 i -237600i Income Before Taxes 1589400 2298400 Income Taxes -635760 -919360 Income Before Extraordinary Loss 953640 1379040 Extraordinary Loss -351000 Net Income /(Loss) $ 953640 $ 1028040sx Earnings per share: Income Before Extraordinary Loss $ 0.75 0.56 Extraordinary Loss Net Income /(Loss) 0.75 0.56
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