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As a part of an employment interview, you are given the partial income statement and selected financial ratios shown for Sneaky Pete's, a chain
As a part of an employment interview, you are given the partial income statement and selected financial ratios shown for Sneaky Pete's, a chain of western stores. Sneaky Pete's is organized into two divisions: Mountain and Valley. You are told that corporate overhead costs are allocated to divisions based on relative sales. Required: a. Complete the income statements for both divisions and the corporation as a whole. (Enter all values as positive value. Round your answers to 1 decimal place.) Sales Cost of sales Gross margin SG&A Allocated corporate costs Operating income Tax expense (@20%) After-tax income Mountain Division Valley Division Corporate 17.4 58.0 $ 119.8 Gross margin percentage 59.00 % 39.00 % 45.00 % Operating margin 20.00 % 22.00 % 21.40 % Profit margin 16.00 % 17.60 % 17.12 %
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