Marshall Company is a large manufacturer of office furniture. The company has recently adopted lean accounting and has identified two value streamsoffice chairs and office tables. Total sales in the most recent period for the two streams are $305 and $370 million, respectively.

In the most recent accounting period, Marshall had the following operating costs, which were traced to the two value streams as follows (in thousands):

	Chairs		Tables
Operating costs:
Materials	$	17,700	$	15,700
Labor		135,000		102,500
Equipment-related costs		45,700		65,200
Occupancy costs		11,950		13,800

In addition to the traceable operating costs, the company had manufacturing costs of $176.750 million, and selling and administrative costs of $45 million that could not be traced to either 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 period inventory that is included in the current income statement to be $7.0 million for the office chair stream and $25.5 million for the office table stream.

Required:

Prepare, in good form (i.e., using Exhibit 17.17 as a guide), the value-stream income statement for Marshall Company. (Enter your answers in thousands of dollars.)

MARSHALL COMPANY Value-Stream Income Statement (000s) Office Chairs Office Tables Total Sales Operating costs: Total operating costs Value-stream profit before inventory change Value-stream profit Less: Nontraceable costs Total nontraceable fixed costs Operating income