Safarl File Edit View History Bookmarks Window Help Cpt 22 HW 4. value: 2.50 points Problem 22-2A Departmental income statements; forecasts LO P3 Williams Company began operations in January 2013 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, 2013 ClockMirror Combined 130,000 55,000 $185,000 63,700 34,100 97800 66.300 20,900 20,0007,000 27, Sales Cost of goods sold Gross profit Direct expenses Sales salaries Store supplies used Depreciation-Equipment 1,200 900 1,500 400 300 1,300 1,800 Total direct expenses 23,600 8,200 31,800 Allocated expenses Rent expense Utilities expense Share of office department expenses 7,020 2,600 10,500 1,400 4,500 3,780 10,800 4,000 15,000 20,120 9,680 29,800 Total allocated expenses Total expenses Net income 43,720 17,880 $ 22,580 3,020 S25,600 Williams plans to open a third department in January 2014 that will sell paintings. Management predicts that the new department will generate $50 000 in sales with a 55% gross profit margin and will require the following direct expenses: sales salaries, $8,000; advertising, $800; store supplies, $500; and equipment depreciation, $200. It will fit the new department into the current rented space by taking some square