Required: a. Complete the income statements for both divisions and the corporation as a whole. (Enter all values as positive value. Round your answers to 1 decimal place.) Sales Cost of sales Gross margin SG&A Allocated corporate costs Operating income Tax expense (@25%) After-tax income Gross margin percentage Operating margin Profit margin Mountain Division Valley Division 22.8 68.00 % 28.00 % 21.00 % 38.00 % 20.00 % 15.00 % $ Corporate 76.0 100.8 47.00 % 22.40 % 16.80 %
Required: a. Complete the income statements for both divisions and the corporation as a whole. (Enter all values as positive value. Round your answers to 1 decimal place.) Sales Cost of sales Gross margin SG&A Allocated corporate costs Operating income Tax expense (@25%) After-tax income Gross margin percentage Operating margin Profit margin Mountain Division Valley Division 22.8 68.00 % 28.00 % 21.00 % 38.00 % 20.00 % 15.00 % $ Corporate 76.0 100.8 47.00 % 22.40 % 16.80 %
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter25: Departmental Accounting
Section: Chapter Questions
Problem 9SPA: INCOME STATEMENT WITH DEPART MENTAL DIRECT OPERATING MARGIN AND TOTAL OPERATING INCOME Durwood...
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Question
Q7
![As a part of an employment interview, you are given the partial income statement and selected financial ratios shown for Sneaky
Pete's, a chain of western stores. Sneaky Pete's is organized into two divisions: Mountain and Valley. You are told that corporate
overhead costs are allocated to divisions based on relative sales.
Required:
a. Complete the income statements for both divisions and the corporation as a whole. (Enter all values as positive value. Round your
answers to 1 decimal place.)
Sales
Cost of sales
Gross margin
SG&A
Allocated corporate costs
Operating income
Tax expense (@25%)
After-tax income
Gross margin percentage
Operating margin
Profit margin
Mountain Division Valley Division
22.8
68.00 %
28.00 %
21.00 %
38.00 %
20.00 %
15.00 %
$
Corporate
76.0
100.8
47.00 %
22.40 %
16.80 %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa6b8004d-653e-455f-9556-127992e217c6%2F73371442-a8b7-452e-834f-a112aeaf2513%2Figtdylp_processed.png&w=3840&q=75)
Transcribed Image Text:As a part of an employment interview, you are given the partial income statement and selected financial ratios shown for Sneaky
Pete's, a chain of western stores. Sneaky Pete's is organized into two divisions: Mountain and Valley. You are told that corporate
overhead costs are allocated to divisions based on relative sales.
Required:
a. Complete the income statements for both divisions and the corporation as a whole. (Enter all values as positive value. Round your
answers to 1 decimal place.)
Sales
Cost of sales
Gross margin
SG&A
Allocated corporate costs
Operating income
Tax expense (@25%)
After-tax income
Gross margin percentage
Operating margin
Profit margin
Mountain Division Valley Division
22.8
68.00 %
28.00 %
21.00 %
38.00 %
20.00 %
15.00 %
$
Corporate
76.0
100.8
47.00 %
22.40 %
16.80 %
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