The Enoteca Fine Wines is a retail store selling vintage wines. On December 31, 20X1, the firm's general ledger contained the accounts and balances below. All account balances are normal.

Enoteca Fine Wines

Worksheet

Year Ended December 31, 20X1Trial BalanceAdjustmentsAdjusted Trial BalanceIncome StatementBalance SheetAccount NameDebitCreditDebitCreditDebitCreditDebitCreditDebitCreditCash$29,886.00$29,886.00$29,886.00Accounts Receivable1,500.001,500.001,500.00Prepaid Advertising480.00160.00320.00320.00Supplies300.00170.00130.00130.00Merchandise Inventory15,000.0014,000.0015,000.0014,000.0014,000.00Store Equipment27,000.0027,000.0027,000.00Accumulated DepreciationStore Equipment3,000.003,800.006,800.006,800.00Office Equipment6,000.006,000.006,000.00Accumulated DepreciationOffice Equipment1,500.001,250.002,750.002,750.00Notes Payable, due 20X220,000.0020,000.0020,000.00Accounts Payable4,705.004,705.004,705.00Wages Payable500.00500.00500.00Social Security Tax Payable31.0031.0031.00Medicare Tax Payable7.257.257.25Unearned Seminar Fees8,000.006,000.002,000.002,000.00Interest Payable200.00200.00200.00Vincent Carbone, Capital32,700.0032,700.0032,700.00Vincent Carbone, Drawing14,110.0014,110.0014,110.00Income Summary15,000.0014,000.0015,000.0014,000.0015,000.0014,000.00Sales154,970.00154,970.00154,970.00Sales Discounts200.00200.00200.00Seminar Fee Income6,000.006,000.006,000.00Purchases91,000.0091,000.0091,000.00Purchases Returns and Allowances1,500.001,500.001,500.00Freight In225.00225.00225.00Rent Expense13,200.0013,200.0013,200.00Wages Expense24,000.00500.0024,500.0024,500.00Payroll Taxes Expense3,324.0038.253,362.253,362.25Depreciation ExpenseStore Equipment3,800.003,800.003,800.00Depreciation ExpenseOffice Equipment1,250.001,250.001,250.00Advertising Expense160.00160.00160.00Supplies Expense170.00170.00170.00Interest Expense150.00200.00350.00350.00Totals$226,375.00$226,375.00$41,118.25$41,118.25$246,163.25$246,163.25$153,217.25$176,470.00$92,946.00$69,693.25Net Income23,252.7523,252.75$176,470.00$176,470.00$92,946.00$92,946.00

Required:

1. Prepare a classified income statement for the year ended December 31, 20X1. The company does not classify its operating expenses as selling expenses and general and administrative expenses.
2. Prepare a statement of owner's equity for the year ended December 31, 20X1. No additional investments were made during the year.
3. prepare classified balance sheet as of December 31, 20X1.

Analyze:

What is the inventory turnover for Enoteca Fine Wines?