P6-4 Preparing an Income Statement and Computing the Receivables Turnover Ratio with Discounts, Returns, and Bad Debts LO6-1, 6-2, 6-3 [The following information applies to the questions displayed below.] Tungsten Company, Inc., sells heavy construction equipment. There are 12,500 shares of capital stock outstanding. The annual fiscal period ends on December 31 The following condensed trial balance was taken from the general ledger on December 31, Current Year: Credit $ Debit 34.500 15700 52.400 40.200 Account Titles Cash Accounts receivable (net) Inventory, ending Operational assets Accumulated depreciation Liabilities Capital stock Retained earnings, January 1, Current Year Sales revenue Sales returns and allowances Cost of goods sold Selling expense Administrative expense Bad debt expense Sales discounts Income tax expense Totals $18.400 25.100 73.500 13.680 148.100 5700 79.900 14.300 15.900 3.300 8.100 8.780 278.780 $ $278.780 References Section Break P6-4 Preparing an Income Statement and Computing the Receivables Turnover Ratio with Discounts, Returns, and Bad Debts LO6-1, 6-2, 6-3 Required: 1. Beginning with the amount for net sales, prepare an income statement (showing both gross profit and income from operations). Treat sales discounts and sales returns and allowances as a contra-revenue. (Round "Earnings per share" to 2 decimal places.) Income Sement For the Year Ended December 31. Current References took & Resources Financial Statements D uty 3 Hand P6-4 Part 1 Light 06-01 Analyze the act of credit card so, als discounts and i s on the amounts o n Check my work 2. 20.00 points P6-4 Part 2 2. The beginning balance in Accounts Receivable (net) was $16,300. Compute the receivables turnover ratio