4 Williams Company began operations in January 2017 with two operating (selling) departments and one service (office) department. Its departmental income statements follow 13 points WILLIAMS COMPANY Departmental Income Statements For Year Ended December 31, 2017 Clock Mirror Combined Sales Cost of goods sold Gross profit Direct expenses 170,000 $115,000 285,000 71,300 154,600 43,700 130,400 83 300 71,300 86,700 eBook 20,500 1,300 28,200 2,100 Sales salaries Advertising Store supplies used Depreciation-Equipment Total direct expenses 950 2,400 25,150 7,700 800 300 400 9,200 1,250 2,800 34,350 Print Allocated expenses Rent expense Utilities expense Share of office department expenses Total allocated expenses 10,870 4,400 20,000 35,270 69.620 $ 39,420 21,360 60,780 7,030 3,100 12,000 22,130 3,840 1,300 8000 13,140 22,340 References Total expenses Net income 47,28 Williams plans to open a third department in January 2018 that will sell paintings. Management predicts that the new department will generate $59,000 in sales with a 75% gross profit margin and will require the following direct expenses: sales salaries, $8,500; advertising, $1,100; store supplies, $1,000; and equipment depreciation, $700. It will fit the new department into the current rented space by taking some square footage from the other two departments. When opened, the new painting department will fill one-fifth of the space presently used by the clock department and one-fourth used by the mirror department. Management does not predict any increase in utilities costs, which are allocated to the departments in proportion to occupied space (or rent expense). The company allocates office department expenses to the operating departments in proportion to their sales. It expects the painting department to increase total office department expenses by $7,600. Since the painting department will bring new customers into the store, management expects sales in both the clock and mirror departments to increase by 12%. No changes for those departments' gross profit percents or their direct expenses are expected except for store supplies used, which will increase in proportion to sales. Required Prepare departmental income statements that show the company's predicted results of operations for calendar-year 2018 for the three operating (selling) departments and their combined totals. (Do not round intermediate calculations. Round your final answers to 4 Required Prepare departmental income statements that show the company's predicted results of operations for calendar-year 2018 for the three operating (selling) departments and their combined totals. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) ints WILLIAMS COMPANY Forecasted Departmental Income Statements For Year Ended December 31, 2018 Clock Mirror Paintings Combined eBook Sales Cost of goods sold Gross profit Direct expenses $178,502750r 74,865 45,885 47,000 346,250 16,450 30,550 87,465 178,780 167,470 91,035 Print 7,700 Sales salaries Advertising Store supplies used Depreciation of equipment Total direct expenses 20,500 1,300 7,700 28,200 References 800 21,800 8,500 7,700 28,200 Allocated expenses Rent expense Utilities expense Share of office dept. expenses Total allocated expenses 0 21,800 69,235S 8,500 37,385 28,200 22,850 139,270 Total expenses 7,700 et income