Problem 22-3A Departmental income statements; forecasts LO P3 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 Mirror Combined Clock 68,600 52,700 121,300 71,400 32,300 103,700 Sales 140,000 $ 85,000 $225,000 Cost of goods sold Gross proft Direct expenses Sales salaries Advertising Store supplies used Depreciation-Equipment 20,000 2,000 ,200 1,700600 2,300 8,600 28,600 800 2,800 300 1,500 Total direct expenses 24,900 10,300 35,200 Allocated expenses Rent expense Utilities expense Share of office department expenses 3,000 11,500 7,040 3,540 10,580 2,000 5,000 5,000 16,500 Total allocated expenses 21,540 10,540 32,080 Total expenses 46,440 20,840 67,280 Net income 24,960 $11,460 $ 36,420