As a part of an employment interview, you are given the partial income statement and selected financial ratios shown for Sneaky Petes, a chain of western stores. Sneaky Petes 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.)

Mountain Division Valley division Corporate

Sales

Cost of Sales

Gross margin

SG&A

allocated corporate cost

operating income

Tax expense 25%

After tax income

Gross margin percentage

operating margin

profit margin