Checl 16 Williams Company began operations in January 2019 with two operating (selling) departments and one service office) department. Its departmental income statements follow. 3 points eBook WILLIAMS COMPANY Departmental Income Statements For Year Ended December 31, 2019 Clock Mirror Combined Sales $ 205,000 $ 92,500 $ 297,500 Cost of goods sold 100,450 57,350 157,800 Gross profit 104,550 35,150 139,700 Direct expenses Sales salaries 20,750 7,000 27,750 Advertising 1,350 875 2,225 Store supplies used 1,275 775 2,050 Depreciation-Equipment 1,650 675 2,325 Total direct expenses 25,025 9,325 34,350 Allocated expenses Rent expense 7,020 3,780 10,800 Utilities expense 7,475 4,025 11,500 Share of office department expenses 10,500 4,500 15,000 Total allocated expenses 24,995 12,305 37,300 Total expenses 21,630 71,650 Net income $ 54,530 $ 13,520 $ 68,050 Print 50,020 Williams plans to open a third department in January 2020 that will sell paintings. Management predicts that the new department will generate $72,500 in sales with a 55% gross profit margin and will require the following direct expenses: sales salaries, $8,750; advertising, $1,175; store supplies, $875; and equipment depreciation, $575. 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 $22,000. Since 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.) WILLIAMS COMPANY Forecasted Departmental Income Statements For Year Ended December 31, 2020 Clock Mirror Paintings Combined Direct expenses Total direct expenses Allocated expenses Total allocated expenses Total expenses