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.) Mountain Division Valley Division Corporate Sales Cost of sales Gross margin SG&A Allocated corporate costs Operating income Tax expense (@25%) After-tax income 18.0 72.0 134.4 Gross margin percentage Operating margin Profit margin 66.00 % 26.00 % 52.50 % 21.20 % 56.00 % 22.40 % 16.80 % 19.50 % 15.90 %
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.) Mountain Division Valley Division Corporate Sales Cost of sales Gross margin SG&A Allocated corporate costs Operating income Tax expense (@25%) After-tax income 18.0 72.0 134.4 Gross margin percentage Operating margin Profit margin 66.00 % 26.00 % 52.50 % 21.20 % 56.00 % 22.40 % 16.80 % 19.50 % 15.90 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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.)
Mountain Division
Valley Division
Сoгporate
Sales
Cost of sales
Gross margin
SG&A
Allocated corporate costs
18.0
72.0
Operating income
Tax expense (@25%)
After-tax income
134.4
52.50 %
Gross margin percentage
Operating margin
Profit margin
66.00 %
56.00 %
26.00 %
21.20 %
22.40 %
19.50 %
15.90 %
16.80 %
< Prey
1 of 3
Next >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F48fa484b-d6e6-4c91-a243-8794f2c522ef%2Fe5ab7402-32cf-417f-9540-0c82e9172b25%2Ft36brpy_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.)
Mountain Division
Valley Division
Сoгporate
Sales
Cost of sales
Gross margin
SG&A
Allocated corporate costs
18.0
72.0
Operating income
Tax expense (@25%)
After-tax income
134.4
52.50 %
Gross margin percentage
Operating margin
Profit margin
66.00 %
56.00 %
26.00 %
21.20 %
22.40 %
19.50 %
15.90 %
16.80 %
< Prey
1 of 3
Next >
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