Question
Williams Company began operations in January 2013 with two operating (selling) departments and one service (office) department. Its departmental income statements follow. WILLIAMS COMPANY Departmental
Williams Company began operations in January 2013 with two operating (selling) departments and one service (office) department. Its departmental income statements follow. WILLIAMS COMPANY Departmental Income Statements clock mirror combined sales 160,000 115,000 275,000 cost of goods sold 78,400 71,300 149,700 gross profit 81,600 43,700 125,300 direct expenses sales salaries 20,000 8,600 28,600 advertising 1,400 300 1700 store supplies used 550 800 1350 depreciation-equipment 1700 200 1900 total direct expenses 23650 9900 33550 allocated expenses rent expense 7070 4520 11590 utilities expense 2600 1662 4262 share of office expense 10500 9500 20000 total allocated expense 20170 15682 35852 total expenses 43820 25582 69402 net income 37780 18118 55898 | |
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