5. A skeleton of Heirloom Mills income statement appears as follows (amounts in thousands):

R1. Use the following ratio data to complete Heirloom Mills income statement:

a. Inventory turnover was 4.50 (beginning inventory was $790; ending inventorywas $750).

b. Rate of return on sales is 0.09.

Income Statement Cost of goods sold Selling and admin expenses Interest expense. Other expenses Selling and admin espenses..1.700 1,700 . . . 135 1,200