Time-To-See Company began operations in January 2011 with two operating (selling) departments and one service (office) department. Its departmental income statements follow.

Time-To-See plans to open a third department in January 2012 that will sell paintings. Management predicts that the new department will generate $57,000 in sales with a 45% gross profit margin and will require the following direct expenses: sales salaries, $7,000; advertising, $1,200; store supplies, $900; and equipment depreciation, $300. 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-sixth 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 $8,100. Since the painting department will bring new customers into the store, management expects sales in both the clock and mirror departments to increase by 8%. 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 companys predicted results of operations for calendar year 2012 for the three operating (selling) departments and their combined totals. (Input all amounts as positive values. Round your percentage value to 1 decimal place, intermediate and final answers to the nearest whole dollar amount. Omit the "$" sign in your response.)

TIME-TO-SEE COMPANY Departmental Income Statements For Year Ended December 31, 2011 Mirror Combined $ 210,000 $105,000 $ 315,000 65,100 168.,000 Clock 102,900 107,100 Sales Cost of goods sold Gross profit Direct expenses 39,900 147,000 20,000 1,300 Sales salaries Advertising Store supplies used Depreciation-Equipment 8,100 28,100 500 1,800 1,350 600 750 2,500 500 3,000 Total direct expenses 24,400 9,850 34,250 Allocated expenses Rent expense Utilities expense Share of office department expenses 7,100 2,700 10,000 3.900 11,000 5,100 5,500 15,500 2,400 Total allocated expenses 11,800 31,600 21,650 65,850 $ 62,900 18,250 $ 81,150 19,800 Total expenses 44,200 Net profit