Builders Company Inc sells heavy construction equipment It has 10 000
Builders Company Inc. sells heavy- construction equipment. It has 10,000 common shares outstanding and its fiscal year ends on December 31. The adjusted trial balance was taken from the general ledger on December 31, 2014:
Required:
1. Prepare a multiple- step statement of earnings (showing both gross profit and net earnings from operations). Treat sales discounts as contra revenues.
2. The beginning balance of trade receivables (net) was $ 16,000. Compute the gross profit percentage and receivables turnover ratio and explain their meaning.
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