**I am confused about income statement and balance sheet.

College Coasters is a San Diego-based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at December 1. $ 8,600 1,800 320 660 950 90 1,250 300 Cash Accounts Receivable Inventory Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income Taxes Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Rent Expense Salaries and Wages Expense Depreciation Expense Income Tax Expense Office Expenses 5,200 2,700 14,940 7,650 1,210 1,900 90 1,300 The company buys coasters from one supplier. All amounts in Accounts Payable on December 1 are owed to that supplier. The inventory on December 1 consisted of 800 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.40. College Coasters records its inventory using perpetual inventory accounts and the FIFO cost flow method. During December, the company entered into the following transactions. Some of these transactions are explained in greater detail below. a. Purchased 500 coasters on account from the regular supplier on 12/1 at a unit cost of $0.42, with terms of n/60. b. Purchased 900 coasters on account from the regular supplier on 12/2 at a unit cost of $0.45, with terms of n/60. c. Sold 1,700 coasters on account on 12/3 at a unit price of $1.00. d. Collected $860 from customers on account on 12/4. e. Paid the supplier $1,570 cash on account on 12/18. f. Paid employees $470 on 12/23, of which $300 related to work done in November and $210 was for wages up to December 22. g. Loaded 80 coasters on a cargo ship on 12/31 to be delivered the following week to a customer in Kona, Hawaii. The sale was made FOB destination with terms of n/60. Other relevant information includes the following at 12/31: h. College Coasters has not yet recorded $190 of office expenses incurred in December on account. i. The company estimates that the equipment depreciates at a rate of $8 per month. One month of depreciation needs to be recorded. j. Wages for the period from December 2331 are $100 and will be paid on January 15. k. The $660 of Prepaid Rent relates to a six-month period ending on May 31 of next year. I. The company incurred $700 of income tax but has made no tax payments this year. m. No shrinkage or damage was discovered when the inventory was counted on December 31. n. The company did not declare dividends and there were no transactions involving common stock. Unadjusted COLLEGE COASTERS Trial Balance December 31, 2020 Account Title Debit Credit $ 7,420 2,640 180 660 950 90 295 Cash Accounts Receivable Inventory Prepaid Rent Equipment Accumulated DepreciationEquipment Accounts Payable Salaries and Wages Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Depreciation Expense Office Expenses Rent Expense Salaries and Wages Expense Total 40 5,200 2,700 16,640 8,405 90 1,300 1,210 2,110 24,965 $ 24,965 Adjusted COLLEGE COASTERS Trial Balance December 31, 2020 Account Title Debit Credit Cash Accounts Receivable 7,420 2,640 180 950 Inventory Equipment Accumulated DepreciationEquipment Accounts Payable Salaries and Wages Payable Income Taxes Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Depreciation Expense Office Expenses Rent Expense Salaries and Wages Expense Income Tax Expense Total 98 485 140 700 5,200 2,700 16,640 8,405 98 1,490 1,870 2,210 700 25,963 $ 25,963 Choose the appropriate accounts to be reported on the income statement. Select the 'adjusted' from the dropdown, which will then populate the balances in those accounts from the trial balance. However, you will need to calculate and enter the amount of the net income or loss for the year ended December 31. Adjusted COLLEGE COASTERS $ Income Statement For the Year Ended December 31 Revenues: Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Rent Expense Salaries and Wages Expense Depreciation Expense Office Expenses 16,640 8,405 8,235 1,870 2,210 98 1,490 0 Total Operating Expenses Income before Income Tax Expense Income Tax Expense Net Income 5,668 2,567 700 1,867 Use the dropdowns to select the accounts properly included on the balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. However, you will need to enter the amount of the Equipment (Net of accumulated depreciation), Common stock and Retained earnings as of December 31. Adjusted 1 t COLLEGE COASTERS Balance Sheet As of December 31 Assets Current Assets Cash Accounts Receivable Inventory Prepaid Rent Total Current Assets Accumulated Depreciation-Equipment Total Assets Liabilities Current Liabilities Accounts Payable Salaries and Wages Payable Income Taxes Payable Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 7,420 2,640 180 0 10,240 90 10,330 485 140 700 1,325 $ 5,200 2,700 7,900 9,225 $ $ Calculate the inventory turnover ratio and days to sell, assuming that inventory was $500 on January 1 of this year. (Use 365 days a year. Round your intermediate calculations and final answers to 1 decimal place.) Inventory Turnover Ratio Days to Sell times per year days