A merchant, G. Green, conducts his business in three departments: Outfitting; Drapery, and Sports goods. Required From the following information extracted from his books at 30 June 2002, you are required to: (a) Compile his income statement showing the gross margin and the net income made in each department, and (b) Calculate the percentage of gross margin to turn over in each department. TOTAL Outfitting Drapery Sports R Stock 1 July 2001 45 160 32 220 Purchases 91 730 7 270 Returns outwards 470 67 820 520 104 100 2 300 Sales 77 380 166 820 990 248 810 3410 21 000 8 400 5 600 67 930 133 600 600 11110 510 Returns inwards Salaries Rent General expenses Stock 30 June 2002 43 320 23170 1440 Expenses not charged directly to departments are to be allocated as follows: 1. Salaries - The first R18 000 is to be allocated to the Outfitting, Drapery and sports departments in the ratio 2:2:1 respectively, and the balance equally to the three departments. 2. Rent is to be allocated according to floor space. The floor space occupied by the departments is: Outfitting : one-half; Drapery: one-third; and Sports: one-sixth. 3. The managers of the departments are paid commission as follows: Outfitting and Drapery: 10% of the net income in their departments before charging commission, and Sports : 5% turnover. 4. General expenses must be allocated to the Outfitting, drapery and sports departments in the ratio 3:3:1