5 Prepare classified Income statement and compute the ratios based on the information provided below (22 marks) Beginning Inventory, January 1 Ending Inventory, December 31 Sales Returns and Allowance Store Supplies Expense Sales Salaries Expense $30,000 $22,000 $850 $2,550 $31,000 Sales Purchases $265,500 $50,000 Rent Expense $37,000 Sales Commissions Expense $4,200 Freight In $1,500 Purchase Discounts $600 Depriciation Expense - Office Equipment $3,200 Depriciation Expense - Store Equipment $5,800 Utilities Expense $8,000 Office Salaries Expense $26,800 Interest Expense Interest Income Current Assets Current liabilities Accounts Receivable, begining Accounts Receivable, ending $640 $1,150 $286,000 $255,000 $146,000 $128,000 Compute in classified income statement Compute ratios 1 Net Sales 2 Cost of Goods sold 3 Gross Profit 4 Operating Expenses 5 Net Income from Operations 6 Other income, net 7 Net Income for the year 1 Gross profit Percentage 2 Inventory Turnover 3 Working Capital 4 Current Ratio 5 Accounts Receivable Turnover