GROSS PROFIT SECTION OF DEPARTMENTAL INCOME STATEMENT Nicole Lawrence and Josh Doyle are partners in a business that sells cheer leading uniforms. They have organized the business, called L and D Uniforms, on a departmental basis as follows: letters, sweaters, and skirts. 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 in total.

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Skirts $8,000 4,750 Letters Sweaters $12,000 5,900 Sales Cost of goods sold $3,000 1,400