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Stillwell analyzes its operating expenses at the end of each period in order to prepare an income statement that will exhibit departmental contribution to common
Stillwell analyzes its operating expenses at the end of each period in order to prepare an income statement that will exhibit departmental contribution to common expenses. From payroll records, advertising copy, and other records, the following tabulation was obtained: Traceable Expense Common Expense Dept. A Dept. B Sales salaries $49,000 $21,000 $7,000 expense Advertising expense 16,000 7,000 11,000 Insurance expense 8,000 2,000 Occupancy expense 16,000 Uncollectible accounts expense 2,000 1,000 Office and other administrative expense 9,000 18,000 10,000 Prepare a departmental income statement for Stillwell Emporium, Inc., showing departmental contribution to common expenses, assuming an overall income tax rate of 30%. Do not use negative signs with your answers below. Stillwell Emporium, Inc. Departmental Income Statement For the Year Ended December 31, 2016 Total Dept. A Dept. B $ 0 $ Sales 0 $ 0 Cost of goods sold 0 0 Gross profit 0 0 0 Operating expenses: Sales salaries expense 0 0 0 Advertising expense 0 0 0 Insurance expense 0 0 0 Uncollectible accounts expense 0 0 0 Office and other administrative expense 0 0 0 Traceable operating expenses 0 0 0 Contribution to common expenses 0 0 0 Common expenses 0 Income before tax 0 Income tax expense 0 $ 0 Net income
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