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 $ 215, eee $ 97,500 $ 312,500 Cost of goods sold 185, 350 60, 45e 165,800 Gross profit 189,658 37,85e 146,700 Direct expenses Sales salaries 20,850 7,000 27,85e Advertising 1,37e 925 2,295 Store supplies used 1,325 825 2,150 Depreciation-Equipment 1,670 725 2,395 Total direct expenses - 25,215 9,475 34,690 Allocated expenses Rent expense 7,020 3,789 12,800 Utilities expense 2,600 1,400 12,5ee Share of office department expenses 10,500 4,500 15, eee Total allocated expenses 20,12e 9,680 38,300 Total expenses 45, 335 19, 155 72,990 Net income $ 64,315 $ 17,895 $ 73, 710 Williams plans to open a third department in January 2020 that will sell paintings. Management predicts that the new department will generate $75,500 in sales with a 55% gross profit margin and will require the following direct expenses: sales salaries, $8,850: advertising, $1,225, store supplies. $925, and equipment depreciation $625. 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 occupied space for 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 $24,000. Since the Painting department will bring new customers into department to increase total office department expenses by $24,000. 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 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.) WILLIAMS COMPANY Forecasted Departmental Income Statements For Year Ended December 31, 2020 Clock Mirror Paintings Combined Sales 232.2007 s 105,300 s 75,500 s 413,000 Cost of goods sold 113,778 65,286 Gross profil 118.422 40,014 75,500 413,000 Direct expenses Sales salaries 20,850 7.000 Advertising 1,370 925 Store supplies used 1.431 891 Depreciation of equipment 1,0701 725 Total direct expenses 25.321 9,541 0 Allocated expenses Rent expense 5,616 2.835 2,349 10.800 Utiles expense 6,500 3,281 2.7191 Share of office dopt expenses 0