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 $ 160,000 78,400 Mirror Combined $95,000 $255,000 58,900 137,300 Gross profit 81,600 36,100 117,700 Direct expenses Sales salaries 21,500 7,900 29,400 Advertising 1,600 800 2,400 Store supplies used 850 700 1,550 Depreciation-Equipment 1,700 500 2,200 Total direct expenses 25,650 9,900 35,550 Allocated expenses Rent expense 7,060 4,020 11,080 Utilities expense 3,100 1,300 4,400 Share of office department expenses 13,000 6,500 19,500 Total allocated expenses 23,160 11,820 34,980 Total expenses 48,810 21,720 70,530 Net income $ 32,790 $14,380 $ 47,170 Williams plans to open a third department in January 2016 that will sell paintings. Management predicts that the new department will generate $51,000 in sales with a 65% gross profit margin and will require the following direct expenses: sales salaries, $6,000; advertising, $1,200; store supplies, $500; and equipment depreciation, $800. 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 Williams plans to open a third department in January 2016 that will sell paintings. Management predicts that the new department will generate $51,000 in sales with a 65% gross profit margin and will require the following direct expenses: sales salaries, $6,000; advertising, $1,200; store supplies, $500; and equipment depreciation, $800. 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 $7,400. 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 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.) Direct expenses Total direct expenses Allocated expenses WILLIAMS COMPANY Forecasted Departmental Income Statements For Year Ended December 31, 2016 Total allocated expenses Clock Mirror Paintings Combined Direct expenses Total direct expenses Allocated expenses Total allocated expenses Total expenses For Year Ended December 31, 2016 Clock Mirror Paintings Combined