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! Required information [The following information applies to the questions displayed below.) Penny Arcades, Inc.,...

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! Required information [The following information applies to the questions displayed below.) Penny Arcades, Inc., Is trying to decide between the following two alternatives to finance its new $18 million gaming center a. Issue $18 million, 5% note. b. Issue 1 million shares of common stock for $18 per share. Required: 1. Assuming the note or shares of stock are issued at the beginning of the year, complete the income statement for e alternative. (Enter your answers in dollars, not millions. (.e., $5.5 million should be entered as 5,500,000). Round "Earnings per Share" to 2 decimal places.) Issue Noto Issue Stock $ 9,300,000 $ 9,300,000 Operating income Interest expense (note only) Income before tax Income tax expense (40%) Net income Number of shares Earnings per share (Not incomo / # of shares) 2,300,000 3,300,000

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