Preparing an Income Statement and Computing the Receivables turnover ratio with Discounts, Returns, and Bad Debts

Tungsten Company, Incorporated, sells heavy construction equipment. There are 14,000 shares of capital stock outstanding. The annual fiscal period ends on Dec 31, current year:

Account Titles:

Cash- (debit) 34,100

Accounts Receivable (Net): (debit) 16,000

Inventory, ending- (debit) 52,000

Operational assets: (debit) 41,300

Accumulated depreciation-(credit) 17,600

Liabilities - (credit) 24,900

Capital stock - (credit) 72,700

retained earnings, Jan. 1, current year- (credit) 16,280

Sales revenue.-148,400

sales returns and allowances -6,800

cost of goods sold-79,900

selling expense-14,800

admin expense- 15,700

bad debt expense-2,600

sales discounts-7,100

income tax expense- 9,580

Totals (debit) 279,880 and 9 (credit) 279,880

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Required: 1. Beginning with the amount for net sales, prepare an income statement (showing both gross profit and income from operations). Note: Round "Earnings per share" to 2 decimal places. TUNGSTEN COMPANY, INCORPORATED Income Statement For the Year Ended December 31, Current Year Selling, general, and administrative expenses: Total selling, general, and administrative expenses 0 Earnings per share on capital stock outstanding Required: 1. Beginning with the amount for net sales, prepare an income statement (showing both gross profit and income from operations). Note: Round "Earnings per share" to 2 decimal places. TUNGSTEN COMPANY, INCORPORATED Income Statement For the Year Ended December 31, Current Year Selling, general, and administrative expenses: Total selling, general, and administrative expenses 0 Earnings per share on capital stock outstanding