Road Bike Mountain Bike
Division Division
Sales
$1,728,000
1,760,000
Cost of goods sold
1,380,000
1,400,000
Operating expenses
175,200
236,800
Invested assets
1,440,000
800,000
Required:
1. Prepare condensed divisional income statements for the year ended December 31, 20Y7, assuming that there were
no support department allocations.
Free Ride Bike Company
Divisional Income Statements
For the Year Ended December 31, 2017
Road Bike Mountain Bike
Division Division
Line Item Description
Sales
$
Cost of goods sold
Gross profit
$
Operating expenses
Operating income
$