XSport Sporting Goods Co. operates two divisionsthe Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 2016, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted:

Sales:
Winter Sports Division	$10,515,000
Summer Sports Division	13,610,000
Cost of Goods Sold:
Winter Sports Division	6,250,000
Summer Sports Division	7,868,000
Sales expense:
Winter Sports Division	1,655,000
Summer Sports Division	1,896,000
Administrative Expense:
Winter Sports Division	1,045,000
Summer Sports Division	1,200,600
Advertising Expense	476,200
Transportation Expense	146,500
Accounts Receivable Collection Expense	120,400
Warehouse Expense	980,000

The bases to be used in allocating expenses, together with other essential information, are as follows:

A.	Advertising expenseincurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $213,200; Summer Sports Division, $263,000.
B.	Transportation expensecharged back to divisions at a charge rate of $5 per bill of lading: Winter Sports Division, 13,800 bills of lading; Summer Sports Division, 15,500 bills of lading.
C.	Accounts receivable collection expenseincurred at headquarters, charged back to divisions at a charge rate of $5 per invoice: Winter Sports Division, 9,630 sales invoices; Summer Sports Division, 14,450 sales invoices.
D.	Warehouse expensecharged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 91,000 square feet; Summer Sports Division, 105,000 square feet.

	Required:
1.	Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. (You may find it useful to work the Supporting Calculations first.)

Labels Service department charges Amount Descriptions Accounts receivable collection expense Advertising expense Cost of goods sold Divisional administrative expenses Divisional selling expenses Gross profit Income from operations Income from operations before service department charges Sales Total divisional expenses Total service department charges Transportation expense Warehouse expense