Selected amounts from the accounting records of Evergreen Technology follow (Click the icon to view the financial data) Required 1. Prepare Evergreen's income statement for the year ended December 31, 20X8. (Show expenses in brackets.) 2. Compute the average inventories turnover period for the year. Last year the inventories turnover period was 96 days. Does this trend suggest improvement or deterioration in average inventories turnover period? (Complete the necessary drop downs and answer boxes.) .... Requirement 1 Complete the first section of the income statement. (Show a minus sign before any sub-totals that are to be deducted.) Now we can prepare the second step of the income statement, showing the operating expenses and the operating profit. (Complete the necessary drop downs. Fill in the relevant cells with its corresponding figures. Negative figures should be entered in brackets.) Gross profit as above The final step of the income statement is to enter other income, then calculate the overall profit for the year. (Complete the necessary drop downs. Fill in the relevant cells with its corresponding figures.) Operating profit as above Other income Requirement 2 Compute the average inventories turnover period for the year. First, show the correct formula: (Complete the necessary drop downs.) Average inventories turnover period X 365 Now, enter the appropriate amounts. Calculate the average inventories turnover period to the nearest whole day. (Enter opening inventories first in your calculation of average inventories.) Average inventories turnover period X 365 = X 365 = days Compare this year's rate to last year, when the average inventories turnover period was 96 days. Does this trend suggest improvement or deterioration in average inventories turnover period? suggest When compared to last year's average inventories turnover period of 96 days, the decrease in the average inventories turnover period improvement Time Remaining: 01:14:08 Next f Trade payables Accumulated depreciation 16,600 Owner's equity 18,900 December 31, 20X8 99,700 Revenue 126,060 241,300 Cost of goods sold Distribution expenses 23,300 Administration expenses 38,000 Interest received 800 21,900 Inventories, December 31, 20X8 Inventories, December 31, 20X7 25,700 Print Done 12