Wiliams Company began operations in January 2015 with two operating (selling) departments and one service (office) department. Ils departmental income statements follow WILLIAMS COMPANY Departmental Income Statements For Year Ended December 31, 2015 Clock Mirror Combined $ 200,000 $125 000 $325.000 98.000 77500 175.500 Sales Cost of goods sold 102,000 47,500 149,500 Gross profit Direct expenses Sales salaries Advertising Store supplies used Depreciation Equipment 21000 2 200 550 1.900 8,600 200 650 700 29.600 2.400 1200 2.600 25,650 10,150 35.800 Total direct expenses Allocated expenses Rent expense Uslities expense Share of office department expenses 7,090 2.400 10.500 3.540 2.400 9500 10 630 4.800 20.000 Total allocated expenses 19 990 15.440 35 430 Total expenses 45.540 25 500 71.230 Net income $ 56.360 $ 21,910 $ 78.270 Wiams plans to open a third department in January 2016 that will parts Management predicts that the new department will generate 551000 in sales with a 55% gross profit margin and will require the following direct expenses: sales salaries. 59.000. advertising 51.100 store supplies 1400 and equipment depreciation, $300. It will the new department into the current rented space by taking some square foot age from the other two departments. When opened the new parting department will one of the space presently used by the clock department and one fourth used by the department Management does not predict any increase in sites costs, which are allocated to the departments in proportion to Occupied space for rent expense. The company allocales ce department expenses to the corating departments in proportion to their sales expects the painting department to increase total office WIMSU IT , quipment depreciation, $300. It will fit the new department into the current rented space by taking some square foot- age from the other two departments. When opened the new painting department will fill one-fifth of the space presently used by the dock 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 $7.800. Since the painting department will bring new customers into the store, management expects sales in both the clock and mirror departments to increase by 5% 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 2016 for the three operating (selling) departments and their combined totals. (Do not round Intermediate calculations. Round your final answer to nearest whole dollar amount.) WILLIAMS COMPANY Forecasted Departmental Income Statements For Year Ended December 31, 2016 Clock Mirror Paintings Combined Direct expenses Total direct expenses Allocated expenses Total located expenses Total expenses