Segmented Income Statement For the Year Ended Dec 31, 2019 Cross Country Ski Mountain Parts & Notes Packages Bikes Accessories Service TOTAL 607 427 790 932 294 235 149,4681842,062 41% 48% 25% 18% 250,260 377 433 73,941 26,321 727 955 357 167 413 499 220294 123 147 1 114 107 2 Sales Cost of goods sold % Cost of goods sold Gross Profit Operating expenses Advertising Depreciation Property taxes Rent Parts & service expense Salaries & commissions Utilities Total Operating Expenses Operating income (loss) Interest expense Income (Loss) before taxes 7 Income tax 8 Net Income (Loss) -NOON 41 595 5,216 9280 18 210 32.935 121 679 28.876 255 792 101,375 1 500 99.875 18 437 $81438 45,587 5,216 9.280 18210 42.885 121 679 28 878 269.734 143,765 1.500 142 265 24,007 $118 258 10,195 5,216 9.2801 18 210 15 954 121,679 26 8761 207 410 12 884 1,500 11 384 8.931 52 453 7623 105,000 5 216 20 865 9.280 37 120 18.210 72 841 0 91 773 75.000 440,037 26 876 107 505 142 206 875 141 19.059 238,965 1,500 6,000 20,559 232 965 4,537 55 912 $25,098 $177054 + 8 24.00% D M N Notes to the financial statements: 1. Advertising is committed to at the beginning of the period by management Management has many different forms of advertising campaigns with different focuses as follows Cross country packages Mountain Accessone Parts & Promotes TOTAL Bikes Service company as 2 a whole 35 35000 S 37000 57000$ 6,000 $ 20 000 $ 105,000 14 5 2 The company uses the straight line method of depreciation 36 37 3. The property taxes are set by the City and do not change with changes in sales volume 3.000 29 4. Rent has two components 46 Monthly amount Percentage based on each 41 department's sales 2 43 5. Parts and services expense varies with sales of cross country skis, mountain bikes and accessones There are to parts & service expense for the parts & service department 24 45 6 Sales commissions are paid on sales for cross country skis, mountables and accessories The Parts & Service department employees do not eam sales consons on the sales 13% Sales commissions Total yearly salary of employees that sell skis, bikes, and accessories These employees will continue to work for the company regardless of which product lines are offered $ 87 000 The store managers are paid a total yearly salary They are responsible for all of the departments. These managers will continue to work evend any of the divisions are closed $ 78,000 The Parts & Service Employees only work in that department. If this department were closed the technicians would be laid off. The total salary for the technicians is $ 75,000 50 52 7 Utilities are the same regardless of activity and will not change even if a product line is dropped 53 8. Interest expense is charged on the outstanding bank loans. The total s 6,000 54 interest expense is 9. Income taxes are calculated for the company as a whole. The company will have to pay tres regardless of which product inest offers M Required: Part A: (25 marks) 1) Restate the segmented income statement using the statement the junior accountant prepared and the notes to the financial statements (Chapter 7 Appendix) Check figures have been provided to ensure you are on the right track. If you are not arriving at the check figures, please discuss with your group members to determine where you went wrong! See the word document provided to your group containing the check figures! Notes The percentage column should be taken as a percentage of sales (for example, cost of goods sold for mountain bikes should be taken as a % of mountain bike sales) There may be small rounding differences where total amounts are off by $1, that is ok! Make sure you are using full Excel functionality and entering formulas into each cell. You cannot use your calculator and input the final answer. D 50 60 01 62 63 Mountain Sports Lid Segmented Income Statement By Product Line For the Year Ended December 31, 2019 ross Country Ski Packag Mountain Bikes Accessories Amount Percent Amount Percent Amount Percent Parts and Service Amount Percent TOTAL Amount Percent 54 65 SALES 607 427 100% 790 932 1000% 100 0% 294 235 100.0% 100 0% 1,842,062 149,468 377 433 73 941 25.196 477% 17696 20 321 66 Less Variable Costs (MUST BE LISTED ALPHABETICALLY) 67 Cost of Goods Sold 250 280 41.2% 68 727955 39.5% 70 71 TOTAL 72 73 Less Traceable Fixed Costs (MUST BE LISTED ALPHABETICALLY 74 75 76 TOTAL Traceable Fixed Costs 77 78 Less Common Foxed Costs (MUST BE LISTED ALPHABETICALLY 79 D Less Traceable Fixed Costs (MUST BE LISTED ALPHABETICALLY) G TOTAL Traceable Fixed Costs Less Common Foxed Costs (MUST BE LISTED ALPHABETICALLY) 3 5 6 7 8 9 0 21 22 Part 2b: Analysis (16 marks) 2. Which product line does the best job of turning sales into profits? (hint: see "SEG" questions in es chapter 7 workbook) Segmented Income Statement For the Year Ended Dec 31, 2019 Cross Country Ski Mountain Parts & Notes Packages Bikes Accessories Service TOTAL 607 427 790 932 294 235 149,4681842,062 41% 48% 25% 18% 250,260 377 433 73,941 26,321 727 955 357 167 413 499 220294 123 147 1 114 107 2 Sales Cost of goods sold % Cost of goods sold Gross Profit Operating expenses Advertising Depreciation Property taxes Rent Parts & service expense Salaries & commissions Utilities Total Operating Expenses Operating income (loss) Interest expense Income (Loss) before taxes 7 Income tax 8 Net Income (Loss) -NOON 41 595 5,216 9280 18 210 32.935 121 679 28.876 255 792 101,375 1 500 99.875 18 437 $81438 45,587 5,216 9.280 18210 42.885 121 679 28 878 269.734 143,765 1.500 142 265 24,007 $118 258 10,195 5,216 9.2801 18 210 15 954 121,679 26 8761 207 410 12 884 1,500 11 384 8.931 52 453 7623 105,000 5 216 20 865 9.280 37 120 18.210 72 841 0 91 773 75.000 440,037 26 876 107 505 142 206 875 141 19.059 238,965 1,500 6,000 20,559 232 965 4,537 55 912 $25,098 $177054 + 8 24.00% D M N Notes to the financial statements: 1. Advertising is committed to at the beginning of the period by management Management has many different forms of advertising campaigns with different focuses as follows Cross country packages Mountain Accessone Parts & Promotes TOTAL Bikes Service company as 2 a whole 35 35000 S 37000 57000$ 6,000 $ 20 000 $ 105,000 14 5 2 The company uses the straight line method of depreciation 36 37 3. The property taxes are set by the City and do not change with changes in sales volume 3.000 29 4. Rent has two components 46 Monthly amount Percentage based on each 41 department's sales 2 43 5. Parts and services expense varies with sales of cross country skis, mountain bikes and accessones There are to parts & service expense for the parts & service department 24 45 6 Sales commissions are paid on sales for cross country skis, mountables and accessories The Parts & Service department employees do not eam sales consons on the sales 13% Sales commissions Total yearly salary of employees that sell skis, bikes, and accessories These employees will continue to work for the company regardless of which product lines are offered $ 87 000 The store managers are paid a total yearly salary They are responsible for all of the departments. These managers will continue to work evend any of the divisions are closed $ 78,000 The Parts & Service Employees only work in that department. If this department were closed the technicians would be laid off. The total salary for the technicians is $ 75,000 50 52 7 Utilities are the same regardless of activity and will not change even if a product line is dropped 53 8. Interest expense is charged on the outstanding bank loans. The total s 6,000 54 interest expense is 9. Income taxes are calculated for the company as a whole. The company will have to pay tres regardless of which product inest offers M Required: Part A: (25 marks) 1) Restate the segmented income statement using the statement the junior accountant prepared and the notes to the financial statements (Chapter 7 Appendix) Check figures have been provided to ensure you are on the right track. If you are not arriving at the check figures, please discuss with your group members to determine where you went wrong! See the word document provided to your group containing the check figures! Notes The percentage column should be taken as a percentage of sales (for example, cost of goods sold for mountain bikes should be taken as a % of mountain bike sales) There may be small rounding differences where total amounts are off by $1, that is ok! Make sure you are using full Excel functionality and entering formulas into each cell. You cannot use your calculator and input the final answer. D 50 60 01 62 63 Mountain Sports Lid Segmented Income Statement By Product Line For the Year Ended December 31, 2019 ross Country Ski Packag Mountain Bikes Accessories Amount Percent Amount Percent Amount Percent Parts and Service Amount Percent TOTAL Amount Percent 54 65 SALES 607 427 100% 790 932 1000% 100 0% 294 235 100.0% 100 0% 1,842,062 149,468 377 433 73 941 25.196 477% 17696 20 321 66 Less Variable Costs (MUST BE LISTED ALPHABETICALLY) 67 Cost of Goods Sold 250 280 41.2% 68 727955 39.5% 70 71 TOTAL 72 73 Less Traceable Fixed Costs (MUST BE LISTED ALPHABETICALLY 74 75 76 TOTAL Traceable Fixed Costs 77 78 Less Common Foxed Costs (MUST BE LISTED ALPHABETICALLY 79 D Less Traceable Fixed Costs (MUST BE LISTED ALPHABETICALLY) G TOTAL Traceable Fixed Costs Less Common Foxed Costs (MUST BE LISTED ALPHABETICALLY) 3 5 6 7 8 9 0 21 22 Part 2b: Analysis (16 marks) 2. Which product line does the best job of turning sales into profits? (hint: see "SEG" questions in es chapter 7 workbook)