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Carryit, Inc. sells specialty purses and backpacks. The company began operations in January 2019 with one store location and one administrative service office location. Its

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Carryit, Inc. sells specialty purses and backpacks. The company began operations in January 2019 with one store location and one administrative service office location. Its departmental Income statement for 2019 follows Carryit,in Departmental income Statement For the Year Ended December 31, 2019 Purses Backpacks Combined Sales 230,000 195.000 425,000 Cost of goods sold 119.600 117.000 236.600 110400 78 000 188.400 Gross pront Direct expenses Sales salaries Advertising Store supplies used Depreciation Equipment 30.000 40,000 1.200 750 3.000 900 400 70,000 2.100 1.150 1500 44.950 32.800 22.750 Total direct expenses Allocated expenses Rent expense Utilities expense Share of administrative office expenses 9.750 3.575 16.900 5.250 1,925 15.040 15.000 5.500 32.000 Total located expenses 39.285 22215 Total experties 75.235 55,015 130.250 Net Income 35.165 22.985 58.150 Carryit, Inc. began seling men's messenger bags starting January 2020. Management predicted the following for 2020 The messenger bags would generate $110.000 in sales The gross profit margin for the messenger bags would be 55% Direct expenses for the messenger bagsdepartment would be: osales salaries 525.000 o advertising 3950: ostore supplies, $350 o equipment depreciation. $250, The company would fit the new Inventory into the current rented space by taking some square footage currently used to display the other two products Starting in January 2020, the new messenger bags would il 20% of the totalented space, with the purses ling 52% of the space and the backpacks ning the remaining 20% of the space There would be no increase in utilities costs, which are allocated to the departments in proportion to occupled space (same as rent expensel The company added a new website for e-commerce which is expected to increase total administrative office expenses by 57.000 The company would continue to locate the administrative office expenses to the operating departments in proportion to their sales. With additional advertising and the newe-commerce site, the company expects sales in both the specialty purses and backpacks to increase by 6% over 2019 There would be no changes for the gross prot percentages for the original departments There would be no changes for direct expenses for the original departments except for advertising, which will increase by 10% and store supplies used, which will increase in proportion to sales Use the space below to submit your 2020 forecasted departmental income statement for Carryit, Inc, which includes a projection for the new department. You should copy and paste the blank worksheet below into the answer are NOTE: The schedule below will not accept entries. You must copy and paste it into the answer area inst and then you may enter amounts. Purses Backpacks Messenger Combined Bags Sales Cost of goods sold Gross profit Direct expenses Sales salaries Advertising Store Supplies used Depreciation of equipment Total direct expenses Allocated expenses Rent expense Utilities expense Share of administrative ofhce expenses Total allocated expenses Total expenses Net Income Carryit, Inc. sells specialty purses and backpacks. The company began operations in January 2019 with one store location and one administrative service office location. Its departmental Income statement for 2019 follows Carryit,in Departmental income Statement For the Year Ended December 31, 2019 Purses Backpacks Combined Sales 230,000 195.000 425,000 Cost of goods sold 119.600 117.000 236.600 110400 78 000 188.400 Gross pront Direct expenses Sales salaries Advertising Store supplies used Depreciation Equipment 30.000 40,000 1.200 750 3.000 900 400 70,000 2.100 1.150 1500 44.950 32.800 22.750 Total direct expenses Allocated expenses Rent expense Utilities expense Share of administrative office expenses 9.750 3.575 16.900 5.250 1,925 15.040 15.000 5.500 32.000 Total located expenses 39.285 22215 Total experties 75.235 55,015 130.250 Net Income 35.165 22.985 58.150 Carryit, Inc. began seling men's messenger bags starting January 2020. Management predicted the following for 2020 The messenger bags would generate $110.000 in sales The gross profit margin for the messenger bags would be 55% Direct expenses for the messenger bagsdepartment would be: osales salaries 525.000 o advertising 3950: ostore supplies, $350 o equipment depreciation. $250, The company would fit the new Inventory into the current rented space by taking some square footage currently used to display the other two products Starting in January 2020, the new messenger bags would il 20% of the totalented space, with the purses ling 52% of the space and the backpacks ning the remaining 20% of the space There would be no increase in utilities costs, which are allocated to the departments in proportion to occupled space (same as rent expensel The company added a new website for e-commerce which is expected to increase total administrative office expenses by 57.000 The company would continue to locate the administrative office expenses to the operating departments in proportion to their sales. With additional advertising and the newe-commerce site, the company expects sales in both the specialty purses and backpacks to increase by 6% over 2019 There would be no changes for the gross prot percentages for the original departments There would be no changes for direct expenses for the original departments except for advertising, which will increase by 10% and store supplies used, which will increase in proportion to sales Use the space below to submit your 2020 forecasted departmental income statement for Carryit, Inc, which includes a projection for the new department. You should copy and paste the blank worksheet below into the answer are NOTE: The schedule below will not accept entries. You must copy and paste it into the answer area inst and then you may enter amounts. Purses Backpacks Messenger Combined Bags Sales Cost of goods sold Gross profit Direct expenses Sales salaries Advertising Store Supplies used Depreciation of equipment Total direct expenses Allocated expenses Rent expense Utilities expense Share of administrative ofhce expenses Total allocated expenses Total expenses Net Income

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