Managerial Accounting.

Williams Company began operations in January 2019 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, 2019 Clock Mirror Combined Sales $ 150,000 $ 85,000 $ 235,000 Cost of goods sold 73,500 52,700 126,200 Gross profit 76,500 32,300 108,800 Direct expenses Sales salaries 22,000 7,000 29,000 Advertising 1,800 800 2,600 Store supplies used 1,150 350 1,500 Depreciation-Equipment 1,600 700 2,300 Total direct expenses 26,550 8,850 35,400 Allocated expenses Rent expense 7,030 4,020 11,050 Utilities expense 2,500 1,500 4,000 Share of office department expenses 10,500 5,500 16,000 Total allocated expenses 20,030 11,020 31,050 Total expenses 46,580 19,870 66,450 Net income $ 29,920 12,430 $ 42,350 Williams plans to open a third department in January 2020 that will sell paintings. Management predicts that the new department will generate $53,000 in sales with a 65% gross profit margin and will require the following direct expenses: sales salaries, $8,000; advertising, $1,000; sto supplies, $50 and equipment depreciation, $500. It will fit the new 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 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 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