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 $78,000 $44,000 Inventory, December 31,2016 32,000 12,000 Net sales 780,000 480,000 Purchases 484,000 362,000 Purchases returns 28,000 8,000 Purchases discounts 16,000 4,000 Transporation in 18,000 14,000 Traceable departmental expenses 91,000 39,000 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. Total $ Do not use negative signs with any or your answers below. Elgin Flooring Company Departmental Income Statement For the Year Ended December 31,2016 Carpeting Department Hard Covering Department Net sales $ $ 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 Gross Profit Traceable department expenses Contribution to common expenses Common expenses Income before tax Income tax expense 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 80% to the carpeting department and 20% 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. Total $ Carpeting Department Hard Covering Department Contribution to common expenses $ $ Common expenses Income before tax Income tax expense Net income $ $