Check my work 16 Williams Company began operations in January 2019 with two operating sering departments and one service office department departmental income statements follow 3 port eto WIELTAS COREA Departmental Incon Statements Yor Year Ended December 1, 2019 clock Mire Combined Sales $225,000 $102,05 327.se Cost of goods sold 11020 63.5 Gross profit 134,750 30,950 155,700 Direct penter Sales salaries 20,950 Advertising 1,350 973 2,36 Store supposed 1,75 375 2.250 Depreciation-Equipment 123 2.465 Total direct expenses 25,405 5.03 55,00 Allocated expenses Rent expert 7.30 3.7 10.10 Utilities expense 25 4.72 13,50 Share of office department expen 15.000 Tuta allocated this EUR 3300 Total expenses S2 23 2 Net Income $0 S1203 29.33 was plans to open a tried department in onoary 2020 that will selling Management predicts that the new department will generate-578,500 in sales with 8 55% to profit margin and will require the following direct expenses sales sale $8.950 advertising, 51275 store cupaies 5975. and equipment depreciation $675 lt will the new department into the current rented ---- --- Check my 16 3 DO Williams plans to open a third department in January 2020 that will sell paintings, Management predicts that the new department will generate $78,500 in sales with a 55% gross profit margin and will require the following direct expenses sales salaries $8.950 advertising, $1.275, store supplies, 5975, and equipment depreciation $675. 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 occupled space for rent expense). The company allocates office department expenses to the operating departments in proportion to their soles. It expect the Painting department to Increase total office department expenses by $26,000Since the Painting department will bring new customers into the store. management expects sales in both the Clock and Mirror departments to increase by 8% 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 2020 for the three operating (selling departments and their combined totals (Do not round intermediate calculations, Round your final answers to nearest whole dollar amount.) Prime RAV 16 WILLIAMS COMPANY Forecasted Departmental income Statements For Year Ended December 31, 2020 Cloch Mirror 3 points Paintings Combined co Direct expenses Total direct expenses Allocated expenses Total allocated openses Total xp
