P6-4 Preparing an Income Statement and Computing the Receivables Turnover Ratio with Discounts, Returns, and Bad Debts LO6-1, 6-2,6-3 [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 Account Titles Cash Accounts recelvable (net) Inventory, ending Operational assets $ 33,600 14,400 52,000 40,000 $ 16,800 24,000 72,000 9,280 147100 Capital stock Retained earnings, January 1 current year Sales revenue Sales retums and allowances Cost of goods sold Selling expense 5,600 78,400 14,100 15,400 1,600 6,400 7680 Bad debt expense Sales discounts Income tax expense Totals $ 269,180 $269,180 Required: 1. Beginning with the amount for net sales, prepare an income statement (showing both gross profit and income from operations). Treat sales discounts and sales returns and allowances as a contra-revenue. (Round "Earnings per share" to 2 decimal places.) Operating expenses Earnings per share on capital stock outstanding Re value 2.00 points P6-4 Part 2 2. The beginning balance in Accounts Receivable (net) was $16,000. Compute the receivables tunover ratio. Numerator times