Income Statement With Departmental Direct Operating Margin and Total Operating Income

Durwood Thomas operates the business Thomas Security that sells security equipment for commercial property and residential homes. The following information is provided for the year ended December 31, 20--:

	Commercial Property		Residential Homes
Net sales	$465,600		$135,900
Cost of goods sold	279,300		54,400
Direct operating expenses:
Advertising expense	34,700		19,900
Store clerks wages expense	29,800		17,700
Truck drivers wages expense	14,700		14,700
Bad debt expense	8,100		3,150
Depreciation expensedelivery equipment	6,050		3,750
Other operating expenses	20,100		9,900
Indirect operating expenses:
Store clerks wages expense		$9,900
Advertising expense		15,500
Store rent expense		19,700
Other operating expenses		10,300

Required:

1. Prepare an income statement showing departmental direct operating margin and total operating income.

Thomas Security
Income Statement
For the Year Ended December 31, 20--
	Commercial Property	Residential Homes	Total
Net sales	$fill in the blank dbade1094ff0030_1	$fill in the blank dbade1094ff0030_2	$fill in the blank dbade1094ff0030_3
Cost of goods sold	fill in the blank dbade1094ff0030_4	fill in the blank dbade1094ff0030_5	fill in the blank dbade1094ff0030_6
Gross profit	$fill in the blank dbade1094ff0030_7	$fill in the blank dbade1094ff0030_8	$fill in the blank dbade1094ff0030_9
Direct operating expenses:
Advertising expense	$fill in the blank dbade1094ff0030_10	$fill in the blank dbade1094ff0030_11	$fill in the blank dbade1094ff0030_12
Store clerks' wages expense	fill in the blank dbade1094ff0030_13	fill in the blank dbade1094ff0030_14	fill in the blank dbade1094ff0030_15
Truck drivers' wages expense	fill in the blank dbade1094ff0030_16	fill in the blank dbade1094ff0030_17	fill in the blank dbade1094ff0030_18
Bad debt expense	fill in the blank dbade1094ff0030_19	fill in the blank dbade1094ff0030_20	fill in the blank dbade1094ff0030_21
Depreciation expense-delivery equipment	fill in the blank dbade1094ff0030_22	fill in the blank dbade1094ff0030_23	fill in the blank dbade1094ff0030_24
Other operating expenses	fill in the blank dbade1094ff0030_25	fill in the blank dbade1094ff0030_26	fill in the blank dbade1094ff0030_27
Total direct operating expenses	$fill in the blank dbade1094ff0030_28	$fill in the blank dbade1094ff0030_29	$fill in the blank dbade1094ff0030_30
Departmental direct operating margin	$fill in the blank dbade1094ff0030_31	$fill in the blank dbade1094ff0030_32	$fill in the blank dbade1094ff0030_33
Indirect operating expenses:
Store clerks' wages expense			$fill in the blank dbade1094ff0030_34
Advertising expense			fill in the blank dbade1094ff0030_35
Store rent expense			fill in the blank dbade1094ff0030_36
Other operating expenses			fill in the blank dbade1094ff0030_37
Total indirect operating expenses			$fill in the blank dbade1094ff0030_38
Operating income			$fill in the blank dbade1094ff0030_39

2. Calculate departmental direct operating margin percentages. Round your answers to one decimal place.

Commercial property direct operating margin percentage	fill in the blank ff528001ffc703d_1 %
Residential homes direct operating margin percentage	fill in the blank ff528001ffc703d_2 %