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, 2017:

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 accounts receivable (net) was $16,000. Compute the gross profit percentage and receivables turnover ratio and explain their meaning.

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Account Titles Credit Debit $ 33,600 Cash Accounts receivable (net) Inventory, ending Property, plant, and equipment Accumulated depreciation 14,400 52,000 40,000 $ 16,800 24,000 Liabilities Common shares Retained earnings, January 1, 2017 Sales revenue Sales returns and allowances Cost of sales 72,000 9,280 145,600 5,600 78,400 Selling expenses Administrative expenses Bad debt expense Sales discounts Income tax expense 13,600 14,400 1,600 6,400 7,680 $267,680 Totals $267,680