Problem 09-3A Departmental income statements; forecasts LO P3 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 $ 190,800 $ 95,800 $ 285,800 Cost of goods sold 93,100 58,900 152,800 Gross profit 96,980 36,100 133,888 Direct expenses Sales salaries 19,500 7,700 27,200 Advertising 1,400 800 2,200 Store supplies used 900 650 1,550 Depreciation-Equipment 2,800 600 2,600 Total direct expenses 23,800 9,750 33,550 Allocated expenses Rent expense 7,85e 3,480 10,530 Utilities expense 2,400 2,200 4,600 Share of office department expenses 10,500 4,580 15,000 Total allocated expenses 19,950 10,180 30,130 Total expenses 43,750 19,930 63,680 Net income $ 53,150 $ 16,170 $ 69,320 Williams plans to open a third department in January 2020 that will sell paintings. Management predicts that the new department will generate $57,000 in sales with a 65% gross profit margin and will require the following direct expenses sales salaries, $7,000; advertising, $1,200; store supplies, $700; and equipment depreciation, $500. 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 (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.) Combined 0 WILLIAMS COMPANY Forecasted Departmental Income Statements For Year Ended December 31, 2020 Clock Mirror Paintings Sales $ 190.000 S 95,000 S 57,000 Cost of goods sold 93,100 58,900 Gross profit 96.900 36,100 57,000 Direct expenses Sales salaries Advertising Store supplies used Depreciation of equipment Total direct expenses 0 0 0 Allocated expenses Rent expense Utilities expense Share of office dept. expenses Total allocated expenses 0 0 0 Total expenses 0 0 0 Net income S 96,900 S 36,100 S 57,000 0 0 0 S 0