Tumwater Canyon Campsites began operations on January 1, 2017. The following information is available at year-end. Assume that all sales were on credit.

REQUIRED:
Prepare an income statement and the current asset and current liability portions of the balance sheet for 2017. Current assets consist of cash, accounts receivable, and inventory. Accounts payable is Tumwater€™s only current liability.

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Return on sales Net income Receivables turnover Inventory turnover $ 25,000 8% Gross margin Quick ratio 40% 50% Accounts payable $200,000