Departmental Income Statement Elgin Flooring Company sells floor coverings through two departments, carpeting and hard covering (tile and linoleum). Operating information for 2016 appears below. Carpeting Department Hard Covering Department Inventory, January 1, 2016 $60,000 $26,000 Inventory, December 31, 2016 Net sales 50,000 30,000 780,000 480,000 Purchases Purchases returns 484,000 362,000 28,000 8,000 Purchases discounts 16,000 4,000 Transporation in 18,000 14,000 Traceable departmental expenses 108,000 56,000