Dd.36. 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.SalesCost of salesGross marginSelling, General and AdministrativeAllocated corporate costsOperating incomeTax expense (@20%)After-tax incomeGross margin percentageOperating marginProfit marginPacific20.0(Thousands of Dollars)Southern40.00 %20.00 %16.00 %50.00 %36.00 %28.80 %$Total100.0623.248.00 %32.80 %26.24 %

Income Statement: It is a part of the financial statement of a company in which revenue and expenses…

Selling, Allocated corporate costs Operating income Tax expense (@20%) After-tax income Gross margin percentage Operating margin Profit margin usuau 20.0 40.00 % 20.00 % 16.00 % 50.00 % 36.00 % 28.80 % 100.0 623.2 48.00 % 32.80 % 26.24 %

Selling, Allocated corporate costs Operating income Tax expense (@20%) After-tax income Gross margin percentage Operating margin Profit margin usuau 20.0 40.00 % 20.00 % 16.00 % 50.00 % 36.00 % 28.80 % 100.0 623.2 48.00 % 32.80 % 26.24 %

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 6SEB

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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 100.0 984.0 48.00 % 32.80 % 26.24 %
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