Company began operations in January 2017 with two operating (selling) departments and one service (office) department. Its departmental income statements follow. COMPANY Departmental Income Statements For Year Ended December 31, 2017 clock Mirror Combined Sales $ 140,000 $115,000 $ 255,000 Cost of goods sold 68,600 71,300 139,900 Gross profit 71,400 43,700 115,100 Direct expenses Sales salaries 22,000 8,400 30,400 Advertising 1,300 600 1,900 Store supplies used 1,150 600 1,750 Depreciation-Equipment 2,000 500 2,500 Total direct expenses 26,450 10,100 36,550 Allocated expenses Rent expense 7,070 4,020 11,090 Utilities expense 2,900 2,000 4,900 Share of office department expenses 12,500 8,500 21,000 Total allocated expenses 22,470 14,520 36,990 Total expenses 48,920 24,620 73,540 Net income $ 22,480 $ 19,080 $ 41,560 Williams plans to open a third department in January 2018 that will sell paintings. Management predicts that the new department will generate $48,000 in sales with a 55% gross profit margin and will require the following direct expenses: sales salaries, $6,500; advertising, $600; store supplies, $400; 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 $8,200. Since the painting department will bring new customers into the store, management expects sales in both the clock and mirror departments to increase by 10%. 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.) 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.) WILLIAMS COMPANY Forecasted Departmental Income Statements For Year Ended December 31, 2018 Clock Mirror Paintings Combined 0 0 0 0 Direct expenses Total direct expenses 0 0 0 0 Allocated expenses Total allocated expenses 0 0 0 Total expenses 0 0 0 0 $ 0 $ 0 $ 0 $ 0