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 Hard Carpeting Covering Department Department Inventory January 1, $60,000 $26,000 2016 Inventory December 31 50,000 30,000 2016 480,000 Net sales 780,000 484,000 Purchases 362,000 Purchases 28,000 8,000 returns Purchases 16,000 4,000 discounts Transporation 14,000 18,000 in Traceable 108,000 56,000 expenses Common operating expenses of the firm were $120,000 a. Prepare a departmental income Common operating expenses of the firm were $120,000 a. Prepare a departmental income statement showing departmental contribution to common expenses and net income of the firm. Assume an overall effective income tax rate of 35%. Elgin uses a periodic inventory system. Do not use negative signs with any of your answers below. Elgin Flooring Company Departmental Income Statement For the Year Ended December 31, 2016 Carpeting Hard Covering Department Department Total Net sales Cost of goods sold Inventory, January 1, 2016 For the Year Ended December 31, 2016 Hard Covering Carpeting Department Department Total Net sales Cost of goods sold: Inventory, January 1, 2016 Purchases Purchases returns Purchases discounts Transportation in Cost of goods sold: Inventory, January 1, 2016 Purchases Purchases returns Purchases discounts Transportation in Cost of goods available for sale Inventory, December 31 2016 Cost of goods sold Cost of goods sold Gross Profit Traceable department expenses Contribution to common expenses Common expenses Income before tax Income tax expense Net income Net income b. Calculate the gross profit percentage for each department. Round to the nearest whole percentage. Carpeting department Hard Covering department C. If the common expenses were allocated 60% to the carpeting department and 40% to the hard covering department, what would the net income be for each department? Do not use negative signs with any of your answers below. Carpeting Hard Covering Department Department Total Contribution to commorn expenses Common expenses Income before tax Income tax expense Net income