Hutchinson Sports Co. operates two divisions--the Action Sports Division and the Team Sports Division. The following income and expense accounts were provided as of Novem- ber 30, 20Y1, the end of the current fiscal year, after all adjustments, including those for inventories, were recorded: Sales-Action Sports (AS) Division SalesTeam Sports (TS) Division Cost of Goods SoldAction Sports (AS) Division Cost of Goods Sold-Team Sports (TS) Division Sales Expense-Action Sports (AS) Division Sales Expense-Team Sports (TS) Division Administrative Expense-Action Sports (AS) Division Administrative Expense-Team Sports (TS) Division Advertising Expense Transportation Expense Accounts Receivable Collection Expense Warehouse Expense $ 9,250,000 15,300,000 5,350,000 9,600,000 750,000 1,050,000 625,000 725,000 1,500,000 327,450 200,250 400,000 The bases to be used in allocating expenses, together with other essential informa- tion, are as follows: a. Advertising expenseincurred at headquarters, charged back to divisions on the basis of usage: Action Sports Division, $600,000; Team Sports Division, $900,000. b. Transportation expense-charged back to divisions at a charge rate of $18.50 per bill of lad- ing: Action Sports Division, 7,000 bills of lading; Team Sports Division, 10,700 bills of lading. c. Accounts receivable collection expense-incurred at headquarters, charged back to divisions at a charge rate of $9.00 per invoice: Action Sports Division, 16,000 sales invoices; Team Sports Division, 6,250 sales invoices. d. Warehouse expense-charged back to divisions on the basis of floor space used in storing division products: Action Sports Division, 60,000 square feet; Team Sports Division, 40,000 square feet Prepare divisional income statements with two column headings: Action Sports Divi- sion and Team Sports Division. Provide supporting schedules for determining service department charges