Obtain all data necessary from the worksheet prepared for Artisan Wines in Problem 12.6A at the end of Chapter 12. Then follow the instructions to complete this problem.

In Problem 12.6A

Cash.......................28,386

Accounts Receivable ...............500

Prepaid Advertising ................480

Supplies ..................300

Merchandise Inventory ............. 15,000

Store Equipment................. 25,000

Accumulated Depreciation—Store Equipment ..... 3,000

Office Equipment ............... 5,000

Accumulated Depreciation—Office Equipment .... 1,500

Notes Payable, due 2017 ............. 20,000

Accounts Payable ................ 2,705

Wages Payable

Social Security Tax Payable

Medicare Tax Payable

Unearned Seminar Fees .............. 6,000

Interest Payable

Vincent Arroyo, Capital ............ 32,700

Vincent Arroyo, Drawing ............ 14,110

Income Summary

Sales ................... 153,970

Sales Discounts ................. 200

Seminar Fee Income

Purchases ................. 91,000

Purchases Returns and Allowances ........ 1,000

Freight In .................. 225

Rent Expense................ 13,200

Wages Expense .............. 24,000

Payroll Taxes Expense ........... 3,324

Depreciation Expense—Store Equipment

Depreciation Expense—Office Equipment

Advertising Expense

Supplies Expense

Interest Expense .............. 150

INSTRUCTIONS

1. Prepare a classified income statement for the year ended December 31, 2016. The company does not classify its operating expenses as selling expenses and general and administrative expenses.

2. Prepare a statement of owner’s equity for the year ended December 31, 2016. No additional investments were made during the year.

3. Prepare a classified balance sheet as of December 31, 2016.

Analyze: What is the inventory turnover for Artisan Wines?