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

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 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, Current Year:

Account TitlesDebitCreditCash$34,900  Accounts receivable (net) 15,900  Inventory, ending 52,900  Operational assets 41,500  Accumulated depreciation  $17,700Liabilities   24,400Capital stock   72,700Retained earnings, January 1, Current Year   20,080Sales revenue   148,800Sales returns and allowances 6,900  Cost of goods sold 80,300  Selling expense 15,200  Administrative expense 17,200  Bad debt expense 2,000  Sales discounts 7,400  Income tax expense 9,480  Totals$283,680$283,680

P6-4 Part 1

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.)