Prcht Center Responsiblity Reporting XSport Sporting Goods Co. operates two divisions - the Winter Sports Oivision and the Summer Sports Division, The following income and expense accounts were provided from the trial balance as of December \\( 31,20 \\mathrm{Y} \\), the end of the fiscal yeac, after all adjustments, including those for inventories, were recorded and posted: The bases to bo used in allocating expenses, together with other essential information, are as foliows: a. Advertising expense-incurred at headquarters, charged back to divisions on the basis of usage: Winter \\( 5 p o r t s \\) Dision, \\$412,000; Summer Sports Division, \\$466,000. b. Transportation expense-charged back to divisions at a charge rate of \\( \\$ 16 \\) per bill of lading: Winter Sports Division, 14,900 bills of lading; Summer Sparts Division, 16,400 bills of lading C. Accounts receivable collection expense-incurred at headquarters, charged back to divisions at a cherge rate of \\( \\$ 9 \\) per involce: Winter \\( \\$ p \\) orts Division, 13,900 sales invoices; Summer Sports Division, 16,300 sales involces. c. Warehouse expense-charged back to divisions on the basis of floor space used in storing division products: Winter Sports Divislon, 130,000 square feet, Summer Sports Oivision, 170,000 squgre feet. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your interim calculations. Xsport Sporting Goods Co. Divisional Income statements For the Year Ended December 31, 20Y9 Winter Sports Division Summer Sports Division Sales Cost of goods sold Gross profit Divisional selling and administrative expenses Owisional selling expenses Divisional \\$dmunistrative expenses Total divisional selling and administrative expenses Income from eperations before service department charges Service department charges: Advertusing expense Transportation expense. Accounts receivable collection expense Warkheuse expense Total service department charges Income from operabions Provide supporting schedules for determining service department charges. If tequired, round per unit amaunts to two decimal places and final answers to the nearest. dollar
