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- ZOOM + Press Esc to exit full screen Chapter 23 - Practice Problem Pink Company operates a store with two departments: Videos and Music. Information about those departments follows: Videos |Music Sales $370.500 $279.500 Cost of Goods Sold 320.000 175,000 Operating Expenses: Salaries 35.000 25,000 Maintenance 12,000 10,000 Utilities 5,000 4.500 Insurance 4,200 3.700 The company also incurred the following service department charges: Advertising $15,000 Salaries 27.000 Office Expenses 3,200 Service department charges are allocated to the departments as follows: advertising on the basis of sales; salaries on the basis of number of employees; and office expenses on the basis of square footage. Additional information about the departments follows: Department Square Footage Number of Employees Videos 5,000 Music 3,000 Directions: Use the above information to prepare a Divisional Income Statement for Pink Company for the year ended December 31. 2019