Williams Company Began operations in January 2015 with two operating departments - selling and office

WILLIAMS COMPANY Departmental Income Statements For Year Ended December 31, 2015 Sales Cost of goods sold Gross profit Direct expenses Sales salaries Advertising Store supplies used DepreciationEquipment Total direct expenses Allocated expenses Rent expense Utilities expense Share of office depanment expenses Total allocated expenses Total expenses Net income Clock s 230,000 112,700 117,300 22,000 2,100 1,700 26,500 7,110 2,900 12,000 22,010 48,510 68, Mirror S115,DOD 71,300 43,700 6,900 8,350 3,540 2,400 5,000 s 24,410 Combined s 345,000 184,000 161,000 28,900 2,600 1,350 2,000 34,350 5,300 17,000 32, gao 67,300 Wliams plans to open a third department in Januar;' 2016 that will sell paintings. Management predicts that the new department will generate 855.000 in sales witn a gross profit margin and will require the following direct expenses: sales salanes. E, DOI], advertising, $1, IDO; store supplies, EDO; and equipment depreciation, S4011 It will fit the new department into the current rented space taking some square toot- ape trom the other two departments Men opened the new painting department will fill one-fitn of the space presently used the clock department and one-fourth used by the mirror department Management does not predict any increase in utilities costs, which are allocated tc the departments in proportion to occupied space (or rent expensei The company allocates office department expenses to the operating departments in propoftion tc their sales. It expects the painting depanment to increase total office department expenses S3, IDO. Since the painting department will bring new customers into the store, management expects sales in 00th the clock a,vd mirror departments to increase 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.)