Tungsten Company, Incorporated, sells heavy construction equipment. There are 12,500 shares of capital stock outstanding. The...
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Tungsten Company, Incorporated, 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: 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 Debit $34,000 15,300 53,500 40,000 7,400 79,400 15,400 16,000 1,700 Credit $17,300 24,400 73,300 16,080 148,800 8,000 9, 180 $279,880 $279, 880 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. 2. The beginning balance in Accounts Receivable (net) was $16,100. Compute the receivables turnover ratio. Tungsten Company, Incorporated, 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: 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 Debit $34,000 15,300 53,500 40,000 7,400 79,400 15,400 16,000 1,700 Credit $17,300 24,400 73,300 16,080 148,800 8,000 9, 180 $279,880 $279, 880 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. 2. The beginning balance in Accounts Receivable (net) was $16,100. Compute the receivables turnover ratio.
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