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Carla Vista Company's condensed income statement is presented below: Revenues $906,000 Expenses Cost of goods sold $400,000 Operating and administrative expenses 165,000 Depreciation expense 59,500
Carla Vista Company's condensed income statement is presented below: Revenues $906,000 Expenses Cost of goods sold $400,000 Operating and administrative expenses 165,000 Depreciation expense 59,500 624,500 Income before taxes 281,500 Income tax expenses 78,000 Net income $203,500 Earnings per share (100,000 shares) $2.04 The following data is compiled relative to Carla Vista's operating segments: Percent Identified with Segment Hotels Grains Candy Revenues 42 % 50 % 8 % Cost of goods sold 50 48 Operating and administrative expense 50 Depreciation expense 42 41 17 Included in the amounts allocated to each segment on the above percentages are the following expenses which relate to general corporate activities: Operating Segment Hotels Grains Candy Totals Operating and administrative expense $12,000 $9,400 $3,300 $24,700 Depreciation expense 4,100 4,800 4,100 13,000 2 14 36 (a) Prepare a schedule showing the amounts distributed to each segment. Operating Segment Hotels Grains Candy Totals $ $ $ $ Revenues Expenses Cost of goods sold Operating and admin. expense Depreciation expense Total expenses $ Operating profit
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