Hello,

I did as much as I could understand. Any help with some details to steps would be great. Thank You!

The bottom is an automatic calculation, please ignor those numbers because they are based on the info I placed thus far.

Thanks Again!

6. 400 points value Williams Company began operations in January 2015 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, 2015 Clock Sales Cost of goods sold Mirror Combined $150,000 $115,000 $ 265,000 71,300 144,800 73,500 Gross profit 76,500 43,700 120,200 Direct expenses Sales salaries Advertising Store supplies used Depreciation-Equipment 19,500 2,200 750 1,500 8,700 28,200 2,800 1,150 1,800 600 400 1,500 Total direct expenses 23,950 10,000 33,950 Allocated expenses Rent expense Utilities expense Share of office department expenses 7,080 2,600 12,000 4,080 1,700 11,160 4,300 9,000 21,000 Total allocated expenses 21,680 14,780 36,460 Total expenses 45,630 24,780 70,410 Net income $ 30,870 $ 18,920 $ 49,790 Williams plans to open a third department in January 2016 that will sell paintings. Management predicts that the new department will generate $56,000 in sales with a 55% gross profit margin and will require the following direct expenses: sales salaries, $9,000; advertising, $600; store supplies, $900; and equipment depreciation, $500. It will fit the new department into the current rented space by taking some square foot age 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 $8,100. 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