Question
Buckeye Department Stores, Inc. operates a chain of department stores in Ohio. The companys organization chart appears below. Operating data for 20x1 follow. BUCKEYE DEPARTMENT
Buckeye Department Stores, Inc. operates a chain of department stores in Ohio. The companys organization chart appears below. Operating data for 20x1 follow.
BUCKEYE DEPARTMENT STORES, INC. | |||||||||||||
Operating Data for 20x1 | |||||||||||||
(in thousands) | |||||||||||||
Columbus Division | |||||||||||||
Olentangy Store | Scioto Store | Downtown Store | Cleveland Division (total for all stores) | ||||||||||
Sales revenue | $ | 5,000 | $ | 2,500 | $ | 12,000 | $ | 22,000 | |||||
Variable expenses: | |||||||||||||
Cost of merchandise sold | 3,000 | 2,100 | 6,000 | 13,000 | |||||||||
Sales personnelsalaries | 500 | 310 | 760 | 1,700 | |||||||||
Sales commissions | 60 | 50 | 90 | 220 | |||||||||
Utilities | 80 | 70 | 160 | 320 | |||||||||
Other | 70 | 35 | 130 | 270 | |||||||||
Fixed expenses: | |||||||||||||
Depreciationbuildings | 130 | 90 | 260 | 480 | |||||||||
Depreciationfurnishings | 90 | 50 | 150 | 310 | |||||||||
Computing and billing | 40 | 30 | 75 | 180 | |||||||||
Warehouse | 80 | 70 | 210 | 460 | |||||||||
Insurance | 40 | 25 | 90 | 220 | |||||||||
Property taxes | 35 | 20 | 80 | 190 | |||||||||
Supervisory salaries | 160 | 110 | 410 | 910 | |||||||||
Security | 30 | 30 | 80 | 230 | |||||||||
The following fixed expenses are controllable at the divisional level: depreciationfurnishings, computing and billing, warehouse, insurance, and security. In addition to these expenses, each division annually incurs $60,000 of computing costs, which are not allocated to individual stores.
The following fixed expenses are controllable only at the company level: depreciationbuilding, property taxes, and supervisory salaries. In addition to these expenses, each division incurs costs for supervisory salaries of $110,000, which are not allocated to individual stores.
Buckeye Department Stores incurs common fixed expenses of $130,000, which are not allocated to the two divisions. Income-tax expense for 20x1 is $2,050,000.
Required:
- Prepare a segmented income statement for Buckeye Department Stores, Inc. Please fill in the chart I provided below, thank you!
Prepare a segmented income statement for Buckeye Department Stores, Inc. (Enter your answers in thousands.)
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started