Reconcile the company's combined net income with the forecasted net income assuming that Department 200 is eliminated. ELEGANT DECOR COMPANY Reconciliation of Combined Income with Forecasted Income Combined net income Forecasted net income Prepare a forecasted annual income statement for the company reflecting the elimination of Department 200 assuming that it will not affect Department 100?s sales and gross profit. The statement should reflect the reassignment of the office worker to one-half time as a salesclerk. ELEGANT DECOR COMPANY Forecasted Annual Income Statement Under Plan to Eliminate Department 200 Operating expenses Total operating expenses