Glades Sporting Goods Co. operates two divisions—the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 20Y8, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Sales—Winter Sports Division $31,920,000 Sales—Summer Sports Division 35,264,000 Cost of Goods Sold—Winter Sports Division 19,152,000 Cost of Goods Sold—Summer Sports Division 20,368,000 Sales Expense—Winter Sports Division 5,472,000 Sales Expense—Summer Sports Division 4,864,000 Administrative Expense—Winter Sports Division 3,192,000 Administrative Expense—Summer Sports Division 3,131,200 Advertising Expense 1,025,000 Transportation Expense 400,400 Accounts Receivable Collection Expense 245,700 Warehouse Expense 3,040,000 The bases to be used in allocating expenses, together with other essential information, are as follows: Advertising expense—incurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $481,000; Summer Sports Division, $544,000. Transportation expense—charged back to divisions at a charge rate of $14 per bill of lading: Winter Sports Division, 13,600 bills of lading; Summer Sports Division, 15,000 bills of lading. Accounts receivable collection expense—incurred at headquarters, charged back to divisions at a charge rate of $9 per invoice: Winter Sports Division, 12,600 sales invoices; Summer Sports Division, 14,700 sales invoices. Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 170,000 square feet; Summer Sports Division, 210,000 square feet. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your interim calculations. Glades Sporting Goods Co. Divisional Income Statements For the Year Ended December 31, 20Y8

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Chapter1: Financial Statements And Business Decisions
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    Glades Sporting Goods Co. operates two divisions—the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 20Y8, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted:

    Sales—Winter Sports Division $31,920,000
    Sales—Summer Sports Division 35,264,000
    Cost of Goods Sold—Winter Sports Division 19,152,000
    Cost of Goods Sold—Summer Sports Division 20,368,000
    Sales Expense—Winter Sports Division 5,472,000
    Sales Expense—Summer Sports Division 4,864,000
    Administrative Expense—Winter Sports Division 3,192,000
    Administrative Expense—Summer Sports Division 3,131,200
    Advertising Expense 1,025,000
    Transportation Expense 400,400
    Accounts Receivable Collection Expense 245,700
    Warehouse Expense 3,040,000

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

    1. Advertising expense—incurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $481,000; Summer Sports Division, $544,000.
    2. Transportation expense—charged back to divisions at a charge rate of $14 per bill of lading: Winter Sports Division, 13,600 bills of lading; Summer Sports Division, 15,000 bills of lading.
    3. Accounts receivable collection expense—incurred at headquarters, charged back to divisions at a charge rate of $9 per invoice: Winter Sports Division, 12,600 sales invoices; Summer Sports Division, 14,700 sales invoices.
    4. Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 170,000 square feet; Summer Sports Division, 210,000 square feet.

    Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your interim calculations.

    Glades Sporting Goods Co.
    Divisional Income Statements
    For the Year Ended December 31, 20Y8
      Winter Sports Division Summer Sports Division
    Sales $fill in the blank c55f9007502a024_1 $fill in the blank c55f9007502a024_2
    Cost of goods sold fill in the blank c55f9007502a024_3 fill in the blank c55f9007502a024_4
    Gross profit $fill in the blank c55f9007502a024_5 $fill in the blank c55f9007502a024_6
    Divisional selling and administrative expenses:    
    Divisional selling expenses $fill in the blank c55f9007502a024_7 $fill in the blank c55f9007502a024_8
    Divisional administrative expenses fill in the blank c55f9007502a024_9 fill in the blank c55f9007502a024_10
    Total divisional selling and administrative expenses $fill in the blank c55f9007502a024_11 $fill in the blank c55f9007502a024_12
    Income from operations before service department charges $fill in the blank c55f9007502a024_13 $fill in the blank c55f9007502a024_14
    Service department charges:    
    Advertising expense $fill in the blank c55f9007502a024_15 $fill in the blank c55f9007502a024_16
    Transportation expense fill in the blank c55f9007502a024_17 fill in the blank c55f9007502a024_18
    Accounts receivable collection expense fill in the blank c55f9007502a024_19 fill in the blank c55f9007502a024_20
    Warehouse expense fill in the blank c55f9007502a024_21 fill in the blank c55f9007502a024_22
    Total service department charges $fill in the blank c55f9007502a024_23 $fill in the blank c55f9007502a024_24
    Income from operations $fill in the blank c55f9007502a024_25 $fill in the blank c55f9007502a024_26

    Provide supporting schedules for determining service department charges. If required, round per unit amounts to two decimal places and final answers to the nearest dollar.

    Glades Sporting Goods Co.
    Service Department Charges
    For the Year Ended December 31, 20Y8
      Winter Sports Division Summer Sports Division Total
    Advertising expense $fill in the blank d6a1d9f42ff8ff0_1 $fill in the blank d6a1d9f42ff8ff0_2 $fill in the blank d6a1d9f42ff8ff0_3
    Transportation rate per bill of lading $fill in the blank d6a1d9f42ff8ff0_4 $fill in the blank d6a1d9f42ff8ff0_5  
    Number of bills of lading fill in the blank d6a1d9f42ff8ff0_6 fill in the blank d6a1d9f42ff8ff0_7  
    Transportation expense $fill in the blank d6a1d9f42ff8ff0_8 $fill in the blank d6a1d9f42ff8ff0_9 $fill in the blank d6a1d9f42ff8ff0_10
    Accounts receivable collection rate $fill in the blank d6a1d9f42ff8ff0_11 $fill in the blank d6a1d9f42ff8ff0_12  
    Number of sales invoices fill in the blank d6a1d9f42ff8ff0_13 fill in the blank d6a1d9f42ff8ff0_14  
    Accounts receivable collection expense $fill in the blank d6a1d9f42ff8ff0_15 $fill in the blank d6a1d9f42ff8ff0_16 $fill in the blank d6a1d9f42ff8ff0_17
    Warehouse rate per sq. ft. $fill in the blank d6a1d9f42ff8ff0_18 $fill in the blank d6a1d9f42ff8ff0_19  
    Number of square feet fill in the blank d6a1d9f42ff8ff0_20 fill in the blank d6a1d9f42ff8ff0_21  
    Warehouse expense $fill in the blank d6a1d9f42ff8ff0_22 $fill in the blank d6a1d9f42ff8ff0_23 $fill in the blank d6a1d9f42ff8ff0_24
 
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