Departmental Income Statement Perkins Appliance & Furniture Company has two departments, appliances and furniture. Operating information for 2016 Alliance Department Furniture Department Inventory, January 1, 2016 Inventory, December 31, 2016 Net sales Purchases Purchases discounts $125,000 70,600 1,120,000 $95,000 43,000 760,000 640,000 480,000 8,000 6,000 Transporation in Traceable departmental expenses 18,000 16,000 195,600 78,000 appears below. 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 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 $ 0 $ Total 0 $ 0 Net sales Cost of goods sold: Inventory, January 1, 2016 Purchases 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 0 0 0 0 0 0 ooo 0 0 0 0 0 0 0 0 0 0 0 | || 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 b. Calculate the gross profit percentage for each department. Round to the nearest whole percentage. Appliance department 0 % Furniture department 0 % 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 $ 0 $ 0 $ 0 Common expenses 0 0 0 Income before tax 0 0 0 Income tax expense 0 0 0 Net income $ 0 $ 0 $ 0