Question 4 Partially correct Mark 3.86 out of 4.00 P Plag question de questio Departmental Income Statement Elgin Flooring Company sells floor coverings through two departments, carpeting and hard covering tile and linoleum). Operating information for 2016 appears below. Carpeting Department Hard Covering Department Inventory, January 1, 2016 $60.000 Inventory, December 31, 2016 42.000 Net sales Purchases 484,000 Purchases returns 28.000 Purchases discounts 16.000 Transporation in 11.000 Traceable departmental expenses 101.000 70000 Common operating expenses of the firm were $120,000. a. Prepare a departmental income statement showing departmental contribution to common expenses and net income of the firm. Assume an overall effective income tax rate o 35%. Elgin uses a periodic inventory system. Do not use negative signs with any of your answers below. in Flooring Company Departmental income Statement For the Year Ended December 31, 2016 Carpeting Department Hard Covering Department 700.000 400.000 $ 1.200.0 Cost of goods sold: 3.000 68.000 100.000 Inventory, January 1, 2016 TOSHIBA F10 F11 - Business course Return to course Elgin Flooring Company Departmental Income Statement For the Year Ended December 31, 2016 Carpeting Department Hard Covering Department Total Net sales 790XIO vs 480,000 5 1,260,000 Cost of goods sold: Inventory, January 1, 2016 68,000 34,000 102,000 Purchases 48144000 362,000 846,000 Purchases returns 28,000 8.000 36,000 Purchases discounts 16,000 4.000 20.000 Transportation in 18,000 14,000 32,000 Cost of goods available for sale 520,000 398,000 924,000 Inventory, December 31, 2016 42,000 22,000 64,000 Cost of goods sold 484.000 376,000 860.000 Gross Profit 296,000 104.000 400,000 Traceable department expenses 101,000 150,000 Contribution to common expenses 195.000 55,000 250.000 Common expenses 120.000 Income before tax 130,000 income tax expense 84,500 Net income b. Calculate the gross profit percentage for each department Round to the nearest whole percentage Carpeting department 37.95 x 96 TOSHIBA b. Calculate the gross profit percentage for each department. Round to the nearest whole percentage. Carpeting department 37.95 X % Hard Covering department 70 c. If the common expenses were allocated 70% to the carpeting department and 30% to the hard covering department, what would the net income be for each department? Do not use negative signs with any of your answers below $ Total 250.000 120.000 Carpeting Department Hard Covering Department Contribution to common expenses 5 195 000 $ 55.000 Common expenses 340,000 16000 Income before tax 111,000 Income tax expense SO 72.1505 12.350 45.500 M500 S Partially corre Morks for this submissions TOSHIBA F6 F F8