Departmental Income Statement Perkins Appliance & Furniture Company has two departments, appliances and furniture Operating information for 2016 appears below: Alliance Department Furniture Department Inventory, January 1, 2016 $140.000 $110,000 Invertory, December 31, 2016 55 600 28,000 Net Sales 1.120,000 760,000 Purchases 640,000 4180,000 Purchases discounts 8.000 6,000 Transporation in 18,000 16,000 Traceable departmental expenses 181,600 54.000 Common operating expenses of the firm were $180,000 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 40%. Perkins uses a periodic inventory system Do not use negative signs with any of your answers below Perkins Appliance & Furniture Company Departmental income Statement For the Year Ended December 31, 2016 Appliance Department Furniture Department Total Net sales Cou of goods sold Inventory January 1, 2016 Purchases Purchases discounts Purchases Purchases discounts Transportation in Cost of goods available for sale Inwentory, 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 5 b. Calculate the gross profit percentage for each department. Round to the nearest whole percentage. Appliance department 96 Furniture department c. If the common expenses were allocated 70% to the appliance department and 30% to the furniture department, what would the net income be for each department? Do not use negative signs with any of your answers below. Appliance Department Furniture Department Total Contribution to common expenses Common expenses Income before tax Income tax expense Net income $ 5