Gross Profit Section of Departmental Income Statement Bill Walter and Alice Jennings are partners in a business

Gross Profit Section of Departmental Income Statement Bill Walter and Alice Jennings are partners in a business called Walters and Jennings Sportswear that sells athletic footwear. They have organized the business on a department basis as follows: running shoes, walking shoes, and specialty shoes. At the end of the first year of operation, the sales and cost of goods sold for the three departments are as follows:

 

 

                                                 Running Shoes          Walking Shoes       Specialty Shoes

Sales                                             $36,000                     $42,000                  $12,000

Cost of goods sold                           23,400                       23,520                      7,600

 

 

 

Required:

 

Prepare the gross profit section of a department income statement for the year ended December 31, 20-. Show the gross profit for each department and for the business in total.

 

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