188. A portion of the divisional income statement for the year just ended is presented below in condensed form. Department B Net sales $ 250,000 Cost of goods sold 190,000...





188. A portion of the divisional income statement for the year just ended is presented below in condensed form.






































Department B




Net sales




$ 250,000




Cost of goods sold




190,000




Gross profit




$ 60,000




Operating expenses




90,000




Loss from operations




$ (30,000)










The operating expenses of Department B include $40,000 for direct expenses.


189. Some items are omitted from each of the following condensed divisional income statements of Demi Inc.




















































Eastern Division




Western Division




Central Division




Sales




$ (1)




$420,000




$580,000




Cost of goods sold




480,000




120,000




$ (5)




Gross profit




$230,000




$ (3)




$200,000




Operating expenses




95,000




160,000




$ (6)




Income from operations




$ (2)




$ (4)




$ 75,000


































(a)




Determine the amount of the missing items, identifying them by number.




(b)




Based on income from operations, which division is the most profitable?










































































































































































May 15, 2022
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