Departmental Income Statement Perkins Appliance & Furniture Company has two departments, appliances and furniture. Operating information for 2019 appears below. Alliance Department Furniture Department Inventory, January 1, 2019 $120,000 $90,000 Inventory, December 31, 2019 75,000 50,000 Net sales 1,120,000 760,000 Purchases 600,000 500,000 Purchases discounts 8,000 6,000 Transportation in 18,000 16,000 Traceable departmental expenses 199,600 82,000 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 25%. 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, 2019 Appliance Department Furniture Department Total Net sales $ 1,120,000 $ 760,000 $1,880,000 Cost of goods sold: Inventory, January 1, 2019 120,000 90,000 210,000 Purchases 640,000 X 480,000 X 1,120,000 x Purchases discounts (8,000) X (6.000) X (14,000) X Transportation in 18,000 16,000 34,000 Cost of goods available for sale (75,600) X (48,000) X (123,600) X Inventory, December 31, 2019 , OX OX Cost of goods sold 694,400 X 532,000 X 10 x Gross Profit 425,600 x 228,000 x OX Traceable department expenses (199,600) X (82,000) X Ox Contribution to common expenses 226,000 X 146,000 x Common expenses OX Income before tax 0 x Income tax expense Net income $ ox b. Calculate the gross profit percentage for each department. Round to the nearest whole percentage. Appliance department 0 X % Furniture department 0 X % c. If the common expenses were allocated 60% to the appliance department and 40% 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 Contribution to common expenses $ Common expenses 0 x 0 x OX Income before tax 0 x 0 x Total 0 x $ 0 x $ 0 x 0 x Income tax expense 0 x 0 x 0 x Net income $ 0 x $ 0 x $ 0 x Check