The following partial financial information (in thousands of dollars) is available for Thole, Incorporated: Corporate overhead costs at Thole are allocated to divisions based on relative sales. Required: a. Complete the income statements for both divisions and the corporation as a whole. Note: Enter your answers in thousands. Enter all values as positive value. Round your answers to 1 decimal place. Sales Cost of sales Gross margin Selling, General and Administrative Allocated corporate costs Operating income Tax expense (@20%) After-tax income Gross margin percentage Operating margin Profit margin Pacific 20.0 (Thousands of Dollars) Southern 40.00% 20.00 % 16.00 % 50.00 % 36.00 % 28.80 % S Total 100.0 590.4 48.00 % 32.80 % 26.24 %
The following partial financial information (in thousands of dollars) is available for Thole, Incorporated: Corporate overhead costs at Thole are allocated to divisions based on relative sales. Required: a. Complete the income statements for both divisions and the corporation as a whole. Note: Enter your answers in thousands. Enter all values as positive value. Round your answers to 1 decimal place. Sales Cost of sales Gross margin Selling, General and Administrative Allocated corporate costs Operating income Tax expense (@20%) After-tax income Gross margin percentage Operating margin Profit margin Pacific 20.0 (Thousands of Dollars) Southern 40.00% 20.00 % 16.00 % 50.00 % 36.00 % 28.80 % S Total 100.0 590.4 48.00 % 32.80 % 26.24 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following partial financial information (in thousands of dollars) is available for Thole, Incorporated:
Corporate overhead costs at Thole are allocated to divisions based on relative sales.
Required:
a. Complete the income statements for both divisions and the corporation as a whole.
Note: Enter your answers in thousands. Enter all values as positive value. Round your answers to 1 decimal place.
Sales
Cost of sales
Gross margin
Selling, General and Administrative
Allocated corporate costs
Operating income
Tax expense (@20%)
After-tax income
Gross margin percentage
Operating margin
Profit margin
Pacific
20.0
(Thousands of Dollars)
Southern
40.00%
20.00 %
16.00 %
50.00 %
36,00 %
28.80 %
$
Total
100.0
590.4
48.00 %
32.80 %
26.24 %
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