Please do not give solution in image format thanku Required:1. Beginning with the amount for net sales, prepare an Income statement (showing bothgross profit and income from operations). Treat sales discounts and sales returns andallowances as a contra-revenue. (Round "Earnings per share" to 2 decimal places.)TUNGSTEN COMPANY, INC.Income StatementFor the Year Ended December 31, 2014Operating expenses:Earnings per share on capital stock outstanding02. The beginning balance in Accounts Receivable (net) was $17,300. Compute thereceivables turnover ratio.NumeratorDenominatorReceivables Turnover Ratiotimes Tungsten Company, Inc., sells heavy construction equipment. There are 10,000 shares ofcapital stock outstanding. The annual fiscal period ends on December 31. The followingcondensed trial balance was taken from the general ledger on December 31, 2014:Account TitlesCreditCashAccounts receivable (net)Inventory, endingOperational assetsAccumulated depreciationLiabilitiesCapital stockRetained earnings, January 1, 2014Sales revenueSales returns and allowancesCost of goods soldSelling expenseAdministrative expenseBad debt expenseSales discountsIncome tax expenseTotalsDebit34,200$15,20053,30040,3007,50080,30015,60016,5002,1007,3008,780281,080$ 17,90025,30072,40018,180147,300$281,080

Lets undestand the basics. Income statement is prepared in order to calculate sales, cost of goods…

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.) TUNGSTEN COMPANY, INC. Income Statement