Check my Williams Company began operations in January 2017 with two operating (selling) departments and one service (office) department. Its departmental income statements follow. WILLIAMS COMPANY Departmental Income Statements For Year Ended December 31, 2017 Clock Mirror Combined Sales $ 200.000 $ 95,000 $295,000 Cost of goods sold 98.000 58.900 156,900 Gross profit 102,000 36,100 138, 100 Direct expenses Sales salaries 21,500 7,200 28,700 Advertising 1,000 500 1,5ee Store supplies used 1.050 750 1.800 Depreciation Equipment 2.400 3,000 Total direct expenses 25,95 9,050 35,000 Allocated expenses Rent expense 7,090 3,96 11,050 Utilities expense 2,800 2.500 5.300 Share of office department expenses 12.000 3.500 15.500 Total allocated expenses 21,890 9,960 31,850 Total expenses 47,840 19,010 66,850 Net Income $ 54,160 $ 17,090 $ 71,250 600 Williams plans to open a third department in January 2018 that will sell paintings. Management predicts that the new department will generate $46,000 in sales with a 75% gross profit margin and will require the following direct expenses: sales salaries, $6,500: advertising, $1,200; store supplies, $600, and equipment depreciation, $1,000. 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 $8,400. Since the painting department will bring new customers into the store. management expects sales in both the clock and mirror departments to increase by 9%. 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 nearest whole dollar amount.)