Selected information from the adjusted trial balance of Warmers Inc. as of December 31, 2019, follows:

	Department A			Department B			Total
Merchandise Inventory, January 1	$	43,000		$	13,000		$	56,000
Merchandise Inventory, December 31		53,000			10,800			63,800
Sales		493,800			329,200			823,000
Sales Returns and Allowances		4,938			3,292			8,230
Purchases		190,000			105,000			295,000
Freight In		480			480			960
Purchases Returns and Allowances		1,400			480			1,880
Sales Salaries Expense		98,000			48,000			146,000
Advertising Expense		14,800			4,800			19,600
Store Supplies Expense		640			22			662
Cash Short or Over		42			82			124
Insurance Expense								14,800
Rent Expense								34,000
Utilities Expense								5,800
Office Salaries Expense								38,000
Other Office Expense								1,300
Uncollectible Accounts Expense								4,800
Depreciation ExpenseFurniture and Fixtures								5,800
Depreciation ExpenseOffice Equipment								480
Interest Income								280
Interest Expense								480

1. Insurance Expense: in proportion to the total of the furniture and fixtures (the gross assets before depreciation) and the ending inventory in the departments. These totals are as follows:

Department A	$	117,000
Department B		63,000
Total	$	180,000

2. Rent Expense and Utilities Expense: on the basis of floor space occupied, as follows:

Department A	4,350	square feet
Department B	1,450	square feet
Total	5,800	square feet

3. Office Salaries Expense, Other Office Expenses, and Depreciation ExpenseOffice Equipment: on the basis of the gross sales in each department.

4. Uncollectible Accounts Expense: on the basis of net sales in each department.

5. Depreciation ExpenseFurniture and Fixtures: in proportion to cost of furniture and fixtures in each department. These costs are as follows.

Department A	$	28,800
Department B		19,200
Total	$	48,000

Prepare a departmental income statement for the year ended December 31, 2019. The bases for allocating indirect expenses are given above.

WARMERS INC.
Income Statement
Year Ended December 31, 2019
	Department A	Department B	Total
Operating revenues
			$0
			0
Net sales	$0	$0	$0
Cost of goods sold
			$0
			0
			0
			0
Delivered cost of purchases			$0
			0
Net delivered cost of purchases			$0
Total merchandise available for sale			$0
			0
Cost of goods sold			$0
	$0	$0	$0
Operating expenses
Direct expenses
			$0
			0
			0
			0
			0
Total direct expenses	$0	$0	$0
			$0
Indirect expenses
			$0
			0
			0
			0
			0
			0
			0
			0
			0
Total indirect expenses	$0	$0	$0
Net income from operations			$0
Other Income
Other Expense
			$0