Required information P6-4 (Algo) 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 10,000 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: 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 Bad debt expense Sales discounts Income tax expense Totals Administrative expense Debit $ 35,200 Credit 18,800 53,600 41,600 $ 18,400 25,600 73,600 10,880 155,100 6,000 79,200 14,900 16,200 2,400 7,200 8,480 $283,580 $283,580 121 1. Beginning with the amount for net sales, prepare an income statement (showing both gross profit and income from operations). (Round "Earnings per share" to 2 decimal places.) TUNGSTEN COMPANY, INC. Income Statement For the Year Ended December 31, Current Year Net sales revenue Sales returns and allowances nces Operating expenses: Cost of goods sold Selling expense Administrative expense Income tax expense Total operating expenses Income from operations Income tax expense Earnings per share on capital stock outstanding 4 0