Income Statement With Departmental Direct Operating Margin and Total Operating Income Durwood Thomas operates the...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Income Statement With Departmental Direct Operating Margin and Total Operating Income Durwood Thomas operates the business Thomas Security that sells security equipment for commercial property and residential homes. The following information is provided for the year ended December 31, 20--: Commercial Property Residential Homes $465,500 280,000 $135,900 53,500 Net sales Cost of goods sold Direct operating expenses: Advertising expense Store clerks' wages expense Truck drivers' wages expense Bad debt expense Depreciation expense-delivery equipment Other operating expenses Indirect operating expenses: Store clerks' wages expense Advertising expense Store rent expense | Other operating expenses 34,900 29,800 15,200 7,600 5,850 20,200 19,500 18,100 15,200 2,850 3,750 9,600 $10,100 15,000 20,500 10,200 Required: 1. Prepare an income statement showing departmental direct operating margin and total operating income. Total Thomas Security Income Statement For the Year Ended December 31, 20- Commercial Residential Property Homes Net sales Cost of goods sold Gross profit Direct operating expenses: Advertising expense Store clerks' wages expense Truck drivers' wages expense Bad debt expense Depreciation expense-delivery equipment Other operating expenses Total direct operating expenses Departmental direct operating margin Indirect operating expenses: Store clerks' wages expense Advertising expense Store rent expense Other operating expenses Total indirect operating expenses Operating income 2. Calculate departmental direct operating margin percentages. Round your answers to one decimal place. Commercial property direct operating margin percentage Residential homes direct operating margin percentage
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!