Wiliams Company began operations in January 2019 with two operating Iseling departments and one service office department is departmental income statements follow WILLIAM CONTACT Baara than For Year Ended December 31, 2010 Clock RETO obited tale 3155.000 67.500 $223.500 crowd 75,50 61,00 117,30D Gas pratit 70, 35,650 104,700 Dieet expec Sales salaried 20,250 7.000 27,250 Advertising 1.250 625 1,875 Store supplies and 1,025 1,550 Depreciation 435 1,975 Total directe 20.075 0.075 32,650 Mlada expenses Rent en 1,020 3.70 10.00 te expense 1600 1.400 8,500 her of office departmexpense 10,500 4,500 15.000 Total allocated expenses 20.10 Total exposed 44,193 10,255 50.550 et Thm 34.895 $ 7.395 39.750 525 1.550 Williams plans to open a third department in January 2020 that will sell paintings, Management predicts that the new department wil generate $57,500 in sales with a 55% gross profit margin and will require the following direct expenses sales salaries, 58,250. advertising. $925 store supplies, $625, and equipment depreciation, $325. 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 occupled 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 $12,000. 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 5 167 400 3 72,300 $ 57.500 207.000 Cost of goods sold 62,026 45,11 26.875 153.000 Groes pro 65,374 27,702 31.625 144.700 Direct expenses Sules salaries 20.250 7.000 8250 Advertising 1.250 625 925 Shore supplies used 1,107 567 620 Depreciation of man 1.550 325 Total direct expo 24,157 8.617 10,125 Allocated expenses Rent expense Usponse Share of office dept expenses Total located expenses 0 ol 0 24.157 8.617 10.125 Net Income $ 612171 $ 19,0655 21.500 5 144.701
