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[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	Debit		Credit
Cash	$	35,000
Accounts receivable (net)		18,250
Inventory, ending		53,400
Operational assets		41,400
Accumulated depreciation			$	18,200
Liabilities				25,400
Capital stock				73,400
Retained earnings, January 1, current year				10,680
Sales revenue				154,100
Sales returns and allowances		5,950
Cost of goods sold		79,100
Selling expense		14,800
Administrative expense		16,100
Bad debt expense		2,300
Sales discounts		7,100
Income tax expense		8,380
Totals	$	281,780	$	281,780

1. Beginning with the amount for net sales, prepare an income statement (showing both gross profit and income from operations). (Round "Earnings per share" to 2 decimal places.)

2. The beginning balance in Accounts Receivable (net) was $16,700. Compute the receivables turnover ratio.

Required: 1. Beginning with the amount for net sales, prepare an income statement (showing both gross profit and income from operations). (Round "Earnings per share" to 2 decimal places.) TUNGSTEN COMPANY, INC. Income Statement For the Year Ended December 31, Current Year Operating expenses: Total operating expenses 0 Earnings per share on capital stock outstanding Required information (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: Credit Debit $ 35,000 18,250 53,400 41,400 Account Titles Cash Accounts receivable (net) Inventory, ending Operational assets Accumulated depreciation Liabilities Capital stock bol Retained ca earnings, January 1, current year Sales revenue es und Sales returns and allowances Cost of goods sold Selling expense Administrative expense Bad debt expense Sales discounts Income tax expense Totals $ 18, 200 25,400 73,400 10,680 154,100 5,950 79,100 14,800 16,100 2,300 7,100 8,380 $ 281,780 $281,780 2. The beginning balance in Accounts Receivable (net) was $16,700. Compute the receivables turnover ratio. Receivables Turnover Ratio Numerator times Denominator