Williams Company began operations in January 2015 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, 2015 Sales Cost of goods sold Clock $ 150,000 Mirror Combined $105,000 $255,000 73,500 65,100 138,600 Gross profit 76,500 39,900 116,400 Direct expenses Sales salaries 20,000 7,900 27,900 Advertising 1,900 300 2,200 Store supplies used 950 800 1,750 Depreciation-Equipment 2,100 800 2,900 Total direct expenses 24,950 9,800 34,750 Allocated expenses Rent expense 7,070 3,780 10,850 Utilities expense 3,000 1,300 4,300 Share of office department expenses 11,000 10,000 21,000 Total allocated expenses 21,070 15,080 36,150 Total expenses 46,020 24,880 70,900 Net income $ 30,480 $ 15,020 $ 45,500 Williams plans to open a third department in January 2016 that will sell paintings. Management predicts that the new department will generate $59,000 in sales with a 45% gross profit margin and will require the following direct expenses: sales salaries, $8,000; advertising, $800; store supplies, $500; and equipment depreciation, $900. 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 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 (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 $7.300. Since the painting department will bring new customers into the store Tollowing direct expenses: sales salah! depreciation, $900. 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 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 (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 $7,300. Since the painting department will bring new customers into the store, management expects sales in both the clock and mirror departments to increase by 6%. 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 0 0 0 Direct expenses Total direct expenses 0 0 0 0 Allocated expenses Total allocated expenses Total expenses 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0