Question 1:

Question 2:

Current Attempt in Progress Shamrock Corporation has the following cost records for June 2022. Sheridan Air lines is considering two alternatives for the financing of a purchase of a fleet of airplanes. These two alternatives are: 1. Issue 82,500 shares of common stock at $30 per share (Cash dividends have not been paid nor is the payment of any contemplated) 2. Issue 6\%, 10year bonds at face value for $2,475,000. It is estimated that the company will eam $705,000 before interest and taxes as a result of this purchase. The company has an estimated tax rate of 40% and has 105,000 shares of common stock outstanding prior to the new financing. Determine the effect on net income and earnings per shaif 2 for these two methods of financing. (Rownd earnings prex share to 2 decimet places, e.5. 2.25.) (b) Prepare an income statement through gross profit for June 2022 assuming sales revenue is $102,500