Selected information from the adjusted trial balance of WarmersInc. as of December 31, 2019, follows:

	Department A			Department B			Total
Merchandise Inventory, January 1	$	43,000		$	13,000		$	56,000
Merchandise Inventory, December 31		53,000			10,800			63,800
Sales		493,800			329,200			823,000
Sales Returns and Allowances		4,938			3,292			8,230
Purchases		190,000			105,000			295,000
Freight In		480			480			960
Purchases Returns and Allowances		1,400			480			1,880
Sales Salaries Expense		98,000			48,000			146,000
Advertising Expense		14,800			4,800			19,600
Store Supplies Expense		640			22			662
Cash Short or Over		42			82			124
Insurance Expense								14,800
Rent Expense								34,000
Utilities Expense								5,800
Office Salaries Expense								38,000
Other Office Expense								1,300
Uncollectible Accounts Expense								4,800
Depreciation Expense—Furniture and Fixtures								5,800
Depreciation Expense—Office Equipment								480
Interest Income								280
Interest Expense								480

1. Insurance Expense: in proportion tothe total of the furniture and fixtures (the gross assets beforedepreciation) and the ending inventory in the departments. Thesetotals are as follows:

Department A	$	117,000
Department B		63,000
Total	$	180,000

2. Rent Expense and UtilitiesExpense: on the basis of floor space occupied, asfollows:

Department A	4,350	square feet
Department B	1,450	square feet
Total	5,800	square feet

3. Office Salaries Expense, Other OfficeExpenses, and Depreciation Expense—OfficeEquipment: on the basis of the gross sales in eachdepartment.

4. Uncollectible Accounts Expense: onthe basis of net sales in each department.

5. Depreciation Expense—Furnitureand Fixtures: in proportion to cost of furniture andfixtures in each department. These costs are as follows.

Department A	$	28,800
Department B		19,200
Total	$	48,000

Prepare a departmental income statement for the year endedDecember 31, 2019. The bases for allocating indirect expenses aregiven above.

WARMERS INC. Income Statement Year Ended December 31, 2019 Department A Department B Total Operating revenues $0 0 Net sales $0 $0 $0 Cost of goods sold $0 0 0 0 Delivered cost of purchases $0 0 Net delivered cost of purchases $0 Total merchandise available forsale $0 0 Cost of goods sold $0 $0 $0 $0 Operating expenses Direct expenses $0 0 0 0 0 Total direct expenses $0 $0 $0 $0 Indirect expenses $0 0 0 0 0 0 0 0 0 Total indirect expenses $0 $0 $0 Net income from operations $0 Other Income Other Expense $0