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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Credit Account Titles Cash Trade receivables (net Inventory ending Property, plant, and equipment Accumulated depreciation Liabilities Common shares Retained earmings, January 1, 2014 Sales revenue Sales retuns and allowances Cost of sales Selling expenses Administrative expenses Bad debt expense Sales discounts Income tax expense Debit 33,600 14.400 52,000 40,000 $16,800 24,000 72,000 9,280 145,600 5,600 78,400 13,600 14,400 1,600 6,400 7,690 $267,690 Totals $267,680