Williams Company began operations in January 2015 with two operating (selling)d service (office) department. Its departmental income statements follow. and one WILLIAMS COMPANY Departmental Income Statements For Year Ended December 31, 2015 Clock Mirror Combined S 230,000 S115,000 S 345,000 71,300 184,000 Sales Cost of goods sold 112,700 117,300 Gross profit Direct expenses 43,700 1,000 20,500 1,500 700 2,400 8,000 800 500 500 Sales salaries 28,500 2,100 1,200 2,900 Store supplies u Depreciation-Equipment Total direct expenses 25,100 9,800 34,700 Allocated expenses Rent expense Utilities expense Share of office department expenses 7,110 2,600 11,000 3,880 2,500 9,500 10.770 5,100 20,500 Total allocated expenses 20,710 15,880 38,370 Total expenses 45,810 25,260 71,070 Net income S 71.490 S 18,440 S 89,930 Williams plans to open a third department in January 2018 that will sell paintings. Management predicts that the new department will generate $59,000 in sales with a 65% gross profit margin and will require the following direct expenses: sales salaries, S8,000; advertising, $1,000; store supplies, $800; and equipment depreciation, 5900. 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 clook 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 (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 S8,400. 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 2018 for the three operating (selling) departments and their combined totals. (Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.)