Texas Company

Income statement
For the year ended December 31,2000.
Department X Department Y Total
Net sales 614,700 262,900 877,600
Cost of merchandise sold 323,350 180,750 504,100
Gross Profit 291,350 82,150 373,500
Operating expenses:
Selling expenses
Sales salary expense 54,000 30,900 84,900
Advertising expense 12,600 6,400 19,000
Depreciation expense: 2,640 1,760 4,400
store equipment
Miscellaneous selling
expense 3,290 1410 4,700
Total selling expenses 72,350 40,470 113,000
General Expense:
Officers’ salaries expense 31,200 20,800 52,000
Office salaries expense 10,560 7,040 17,600
Rent expense 10,010 5,390 15,400
Property tax expense 3,740 3,060 6,800
Heating and Lighting expense
3,315 1,785 5,100
Uncollectible Accounts
Expense 3,220 1,380 4,600
Insurance Expense: 2,145 1,755 3,900
Miscellaneous General 3,360 1,440 4,800
Expenses
Total General Expenses 67,550 42,650 110,200
Total Operating Expense 140,080 83,120 223,200
Income (loss) from operations
151,270 (970) 150,300
Other Expense (2,500)
Income before income tax 147,800
Income tax 64,444
Net income 83,356

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Income statement Departmentalized through income form operation

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