Preparation of Responsibility Income Statements
Hal-Marts' Inc

question 90

Essay

Preparation of responsibility income statements
Hal-Marts' Inc. has two sales departments: equipment and clothing. During February, these two departments reported the following operating results:

In addition, fixed costs common to both departments amounted to $54,400.
Complete the following responsibility income statement for Hal-Marts, Inc. Follow the contribution margin approach, and show percentages as well as dollar amounts. Conclude your income statement with the company's income from operations.
HAL-MARTS, INC
Income Statement by Product Lines
For the Month Ended February 28, 20__
$$\begin{array} { | l | l | l | l | l | l | l | } \hline & \text { Hal-Mart, Inc. } &&& \text { Segments } \\\hline &&\text { Equipment } && \text { Clothing } \\\hline & \text { Dollars } & \% & \text { Dollars } & \% & \text { Dollars } & \% \\\hline \text { Sales } & & & \$ 490,000 & & \$ 250,000 & \\\hline \text { Contribution margin } & & & & & & \\\hline & & & & & & \\\hline & & & & & & \\\hline & & & & & & \\\hline & & & & & & \\\hline\end{array}$$

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Definitions:

Personal Assistant

An individual employed to aid with daily administrative or personal tasks for another person, often within a professional or personal setting.

Two-Income Parents

Households where both parents are earners, contributing financially to the family's income.

Responsible Adult

An individual who is mature and capable of making informed decisions, often tasked with caring for or overseeing minors or dependent individuals.

Dual-Earner Couples

Partnerships where both individuals hold jobs and contribute financially to the household, which may involve navigating challenges with balancing work and family responsibilities.