GROSS PROFIT SECTION OF DEPARTMENTAL INCOME STATEMENT Bill Walters and Alice Jennings are partners in a business called Walters and Jennings Sportswear that sells athletic footwear. They have organized the business on a departmental basis as follows: running shoes, walking shoes, and specialty shoes. At the end of the first year of operation, the sales and cost of goods sold for the three departments are as follows:

Prepare the gross profit section of a departmental income statement for the year ended December 31, 20--. Show the gross profit for each department and for the business intotal.

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Running Shoes $36,000 23,400 Walking Shoes $42,000 23,520 Specialty Shoes $12,000 Sales Cost of goods sold 7,680