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Tungsten Company, Inc., sells heavy construction equipment. There are 14,000 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, 2014:

Account Titles	Debit		Credit
Cash	$	35,500
Accounts receivable (net)		15,700
Inventory, ending		52,400
Operational assets		40,200
Accumulated depreciation			$	18,400
Liabilities				25,500
Capital stock				72,200
Retained earnings, January 1, 2014				14,180
Sales revenue				147,500
Sales returns and allowances		5,600
Cost of goods sold		79,600
Selling expense		14,400
Administrative expense		17,000
Bad debt expense		2,200
Sales discounts		7,400
Income tax expense		7,780
Totals	$	277,780	$	277,780

10.

value: 0.90 points

Required information

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.)

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11.

value: 1.00 points

Required information

2.	The beginning balance in Accounts Receivable (net) was $17,800. Compute the receivables turnover ratio.