1. Beginning with the amount for net sales, prepare an income statement (showing both gross profit and income from operations).

Required information [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: Credit Debit $ 34,400 14,800 53,500 41,400 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 $ 17,200 25,400 72,200 15,680 149,000 7,200 79,500 15, 100 16,900 2,300 6,600 7,780 $ 279,480 $279,480