From the following data, prepare in proper form an income statement showing departmental gross profit (assume a 28% tax rate) for Quick Stop for the year ended December 31, 201X.
Cash .............................................................................$10,500
Accounts Receivable ............................................................7,500
Allowance for Doubtful Accounts .............................................1,400
Merchandise Inventory, January 1, 201X, Grocery .........................8,000
Merchandise Inventory, January 1, 201X, Pizza ............................4,000
Merchandise Inventory, December 31, 201X, Grocery ...................17,500
Merchandise Inventory, December 31, 201X, Pizza ........................7,000
Equipment ......................................................................16,500
Accumulated Depreciation, Equipment ......................................9,100
Accounts Payable .............................................................10,600
B. Smate, Capital ..............................................................13,000
B. Smate, Withdrawals .........................................................2,900
Sales, Grocery ..................................................................17,000
Sales, Pizza .....................................................................18,000
Sales Returns and Allowances, Grocery .....................................2,200
Sales Returns and Allowances, Pizza .........................................3,200
Purchases, Grocery ..............................................................21,200
Purchases, Pizza ................................................................16,000
Purchases Returns and Allowances, Grocery ..................................600
Purchases Returns and Allowances, Pizza .....................................500
Total Operating Expenses .......................................................4,600