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...

A. Complete the income statements for both divisions and the corporation as a whole.


Extracted text: 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 8.0 40.0 Operating income Tax expense (@20%) 98.4 After-tax income 50.0 % 37.5 % 40.0% Gross margin percentage Operating margin Profit margin 20.0 % 16.0 % 22.5 % 20.5 % 18.0 % 16.4%