COVINGTON PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2022 Net [credit] sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income 1,005,00040,00023,00075,0001,143,000$307,000 COVINGTON PRODUCTS COMPANY Balance Sheets December 31, 2022 and 2021 2022 Assets Current Assets: Cash Accounts receivable Inventory Prepaid rent Total current assets Long-Term Assets: Investment in bonds Land Equipment Less: Accumulated depreciation Total Assets Liabilities and Stockholders' Equity Current Liabilities: Accounts payable Interest payable Income tax payable Total current liabilities Long-Term Liabilities: Notes payable Total Liabilities Stockholders' Equity: Common stock Retained earnings Total stockholders' equity Total Liabilities and Stockholders' Equity \begin{tabular}{rrr} $161,000 & $ & 76,000 \\ 9,200 & 8,000 \\ 33,000 & 20,000 \\ \hline 203,200 & 104,000 \\ & & \\ 340,000 & 295,000 \\ \hline 543,200 & & 399,000 \\ & & \\ 275,000 & & 275,000 \\ 277,800 & 276,000 \\ \hline 552,800 & & 551,000 \\ \hline$1,096,000 & $ & 950,000 \\ \hline \hline \end{tabular} Points Possible: 10 In column E, type the formula for each ratio formula. For example, type "Net credit sales/Average AVR." (It's okay to abbreviate.) Then, in column G, use cell references (linking) and Excel formulas to compute the selected risk and profitability ratios for 2022 . The receivables turnover ratio has been completed as an example. Save your file with your name in the file name. Submit on Canvas. Note: When calculating a ratio that uses an average, such as the receivables turnover ratio, you may either use two sets of parentheses or the AVERAGE function. For example, to divide net credit sales by average A/R: ='Given Data'!F7/(('Given Data'!F28+'Given Data'!G28)/2) or ='Given Data'!F7/AVERAGE('Given Data'!F28:G28)