Departmental Income Statement

The following information was obtained from the ledger of Stillwell Emporium, Inc.:

Stillwell Emporium, Inc.

Trial Balance

December $31$

Debit Credit

Cash $$18,000$

Accounts receivable $($net$)70,000$

Inventory, December $3145,000$

Equipment and fixtures $($net$)97,000$

Accounts payable $$34,000$

Common stock $120,000$

Retained earnings $30,000$

Sales $-$ department a $360,000$

Sales $-$ department b $140,000$

Cost of goods sold $-$ department a $216,000$

Cost of goods sold $-$ department b $70,000$

Sales salaries expense $74,000$

Advertising expense $31,000$

Insurance expense $($on merchandise$)10,000$

Uncollectible accounts expense $3,000$

Occupancy expense $16,000$

Office and other administrative expense $34,000-$

$$684,000$ $$684,000$

Stillwell analyzes its operating expenses at the end of each period in order to prepare an income statement that will exhibit departmental contribution to common expenses. From payroll records, advertising copy, and other records, the following tabulation was obtained:

Traceable Expense

Dept. A Dept. B Common Expense

Sales salaries expense $$48,000$ $$20,000$ $$6,000$

Advertising expense $15,0006,00010,000$

Insurance expense $8,0002,000$

Occupancy expense $16,000$

Uncollectible accounts expense $2,0001,000$

Office and other administrative expense $17,0009,0008,000$

Prepare a departmental income statement for Stillwell Emporium, Inc., showing departmental contribution to common expenses, assuming an overall income tax rate of $30\%.$

Do not use negative signs with your answers below.

Stillwell Emporium, Inc.

Departmental Income Statement

For the Year Ended December $31$

Dept. A Dept. B Total

Sales Answer

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Cost of goods sold Answer

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Gross profit Answer

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Operating expenses:

Sales salaries expense Answer

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Advertising expense Answer

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Insurance expense Answer

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Uncollectible accounts expense Answer

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Office and other administrative expense Answer

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Traceable operating expenses Answer

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Contribution to common expenses Answer

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Common expenses Answer

Income before tax Answer

Income tax expense Answer

Net income Answer