From the Following Partial Data,prepare a Departmental Income Statement Showing

question 119

Essay

From the following partial data,prepare a departmental income statement showing income before tax along with net income for Mason Corporation for the month ended December 31.
$\begin{array} { l r } \text { Net Sales-Sporting Coods } & \$ 3,000 \\ \text { Net Sales-Shoes } & 1,500 \\ \text { Cost of Goods Sold-Sporting Coods } & 1,950 \\ \text { Cost of Goods Sold-Shoes } & 900 \end{array}$
Income Tax Rate is $30 \%$
Sporting Goods Dept. $- 5,000$ square feet
Shoe Dept. $- 3,000$ square feet
The following items are indirect expenses and should be allocated:
$$\begin{array}{l}\begin{array} { l r l }&\text { Basis of Appropriation }\\ \text { Building Expense } & \$ 240 & \text { Square Footage } \\\text { Delivery Expense } & \$ 135 & \text { Net Sales } \\\text { Depreciation Expense } & \$ 40 & \text { Square Footage }\end{array}\end{array}$$

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Definitions:

Debt to Assets Ratio

A financial metric indicating the proportion of a company's assets that are financed by debt, offering insights into financial leverage.

Times Interest Earned Ratio

A financial ratio that measures a company's ability to meet its debt obligations by comparing its earnings before interest and taxes to its interest expenses.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, including the balance sheet, income statement, and cash flow statement.

Bond Issue

The process by which an issuer creates a financial security (bond) that can be purchased by investors, representing a loan made by the investor to the issuer.