From the following data, prepare in proper form an income statement showing departmental gross profit (assume a 22% tax rate) for Speedy Stop for the year ended December 31, 201X.
Cash .....................................................................................$10,000
Accounts Receivable .....................................................................5,500
Allowance for Doubtful Accounts .....................................................1,800
Merchandise Inventory, January 1, 201X, Grocery ..................................6,800
Merchandise Inventory, January 1, 201X, Pizza .....................................5,200
Merchandise Inventory, December 31, 201X, Grocery ............................18,500
Merchandise Inventory, December 31, 201X, Pizza .................................8,400
Equipment .................................................................................17,500
Accumulated Depreciation, Equipment ................................................8,800
Accounts Payable .........................................................................9,900
B. Smate, Capital ........................................................................12,000
B. Smate, Withdrawals ...................................................................3,400
Sales, Grocery............................................................................ 23,000
Sales, Pizza ...............................................................................22,000
Sales Returns and Allowances, Grocery ...............................................2,000
Sales Returns and Allowances, Pizza................................................... 3,500
Purchases, Grocery ......................................................................21,600
Purchases, Pizza .........................................................................16,000
Purchases Returns and Allowances, Grocery ...........................................800
Purchases Returns and Allowances, Pizza ...............................................400
Total Operating Expenses ...............................................................4,800