Tungsten Company, Inc., sells heavy construction equipment. There are 13,500 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 Debit CreditCash $33,600 Accounts receivable (net) 14,400 Inventory, ending 52,000 Operational assets 40,000 Accumulated depreciation 16,800Liabilities 24,000Capital stock 72,000Retained earnings, January 1, 2014 9,280Sales revenue 147,100Sales returns and allowances 5600 Cost of goods sold 78400 Selling expense 14100 Administrative expense 15400 Bad debt expense 1600 Sales discounts 6400 Income tax expense 7680 Total 269,180 269,180Required: a. 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. b. The beginning balance in Accounts Receivable (net) was S16,OOO. Compute the receivables turnover ratio and explain its meaning.