Profit Center Responsibility Reporting for a Service CompanyProfit Center Responsibility Reporting for a Service Company

Thomas Railroad Company organizes its three divisions, the North $($N$),$ South $($S$),$ and West $($W$)$ regions, as profit centers. The chief executive officer $($CEO$)$ evaluates divisional

performance using income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December $31$ :

The company operates three service departments: the Dispatching Department, the Equipment Management Department, and the Treasurer's Department. The Treasurer's Department

and general corporate officers' salaries are not controllable by division management. The Dispatching Department manages the scheduling and releasing of completed trains. The

Equipment Management Department manages the inventories of railroad cars. It makes sure the right freight cars are at the right place at the right time. The Treasurer's Department

conducts a variety of services for the company as a whole. The following additional information has been gathered:

Required:

Prepare quarterly income statements showing income from operations for the three regions. Use three column headings: North, South, and West. Do not round your interim

Thomas Railroad Company organizes its three divisions, the North $($N$),$ South $($S$),$ and West $($W$)$ regions, as profit centers. The chief executive officer $($CEO$)$ evaluates divisional

performance using income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December $31$ :

The company operates three service departments: the Dispatching Department, the Equipment Management Department, and the Treasurer's Department. The Treasurer's Department

and general corporate officers' salaries are not controllable by division management. The Dispatching Department manages the scheduling and releasing of completed trains. The

Equipment Management Department manages the inventories of railroad cars. It makes sure the right freight cars are at the right place at the right time. The Treasurer's Department

conducts a variety of services for the company as a whole. The following additional information has been gathered:

Required:

Prepare quarterly income statements showing income from operations for the three regions. Use three column headings: North, South, and West. Do not round your interim