80.2K

Verified Solution

Link Copied!

Starting with income from operations before income taxes, prepare a comparative income statement for the years ended May 31, 2018 and 2017. The statement wil be part of Sage Problem 16-9 Sage Corporation is preparing the comparative financial statements to be included in the annua report to stockholders. Sage employs a fiscal year ending May 31 Corporation's annual report to stockholders and should include appropriate earnings per share presentation. (Round earnings per share to 2 decimal places, e.g. $2.55.) Income from operations before income taxes for Sage was $1,445,000 and $635,000 respectively, for fiscal years ended May 31, 2018 and 2017. Sage experienced a loss from discontinued operations of $367,000 on March 3, 2018" A 40% combined income tax rate pertains to aoy.and.all of Sage Corporation's profits, gains, and losses. SAGE CORPORATION Comparative Income Statement For the Years Ended May 31, 2018 and 2017 2018 2017 Sage's capital structure consists of preferred stock and common stock. The company has not issued any convertible securities or warrants and there are no outstanding stock options. Sage issued 37,100 shares of $100 par value, 6% cumulative preferred stock in 2014, All-of this stock is outstanding, and no preferred dividends are in arrears. There were 1,003,200 shares of $1 par common stock outstanding on June 1, 2016. On September 1, 2016, Sage sold an additional 422,400 shares of the common stock at $18 per share. Sage distributed a 20% stock dividend on the common shares outstanding on December 1, 2017. These were the only common stock transactions during the past 2 fiscal years. Determine the weighted-average number of common shares that would be used in computing earnings per share on the current comparative income statement for: Earnings per share Weighted-average number of common shares (1) The year ended May 31, 2017 (2) The year ended May 31, 2018 Click if you would like to Show Work for this question: Open Show Work

Answer & Explanation Solved by verified expert

See Answer