As a part of an employment interview. you are given the partial income statement and...
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Accounting
As a part of an employment interview. you are given the partial income statement and selected financial ratios shown for Sneaky Pete's, a chain of western stores. Sneaky Pete's is organized into two divisions: Mountain and Valley. You are told that corporate overhead costs are allocated to divisions based on relative sales. Required: a. Complete the income statements for both divisions and the corporation as a whole. (Enter all values as positive value. Round your answers to 1 decimal place.) Mountain Division Valley Division Corporate Sales Cost of sales Gross margin SG&A Allocated corporate costs Operating income Tax expense (@25%) After-tax income 15.6 78.0 S 135.6 Gross margin percentage Operating margin Profit margin 69.00 % 29.00 % 21.80 % 44.00 % 21.00% 15.75% 16.95 %
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