Marshall Company is a large manufacturer of office furniture. The company has recently adopted lean accounting and has identlfied

two value streams$-$office chairs and office tables. Total sales in the most recent perlod for the two streams are $$245$ and $$310$ million,

respectlvely.

In the most recent accounting perlod, Marshall had the following operating costs, which were traced to the two value streams as

follows $($In thousands$)$:

In addition to the traceable operating costs, the company had manufacturing costs of $$116\mathrm{.}750$ million, and selling and administrative

costs of $$25$ million that could not be traced to elther value stream. Due to the implementation of lean methods, the firm has been able

to reduce inventory In both value streams significantly. Marshall has calculated the fixed cost of prior$-$perlod inventory that is included

In the current Income statement to be $$5\mathrm{.}5$ million for the office chalr stream and $$22\mathrm{.}5$ million for the office table stream.

Requlred:

Prepare, In good form $($I$.$e$.,$ using Exhiblt $17\mathrm{.}17$ as a gulde$),$ the value$-$stream Income statement for Marshall Company. $($Enter your

answers In thousands of dollars.$)$