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
		Clock			Mirror		Combined
Sales	$	250,000		$	95,000		$	345,000
Cost of goods sold		122,500			58,900			181,400
Gross profit		127,500			36,100			163,600
Direct expenses
Sales salaries		20,000			8,300			28,300
Advertising		1,300			900			2,200
Store supplies used		950			550			1,500
DepreciationEquipment		2,100			800			2,900
Total direct expenses		24,350			10,550			34,900
Allocated expenses
Rent expense		7,090			3,540			10,630
Utilities expense		2,700			1,500			4,200
Share of office department expenses		13,000			3,000			16,000
Total allocated expenses		22,790			8,040			30,830
Total expenses		47,140			18,590			65,730
Net income	$	80,360		$	17,510		$	97,870

Williams plans to open a third department in January 2016 that will sell paintings. Management predicts that the new department will generate $61,000 in sales with a 75% gross profit margin and will require the following direct expenses: sales salaries, $8,500; advertising, $1,000; store supplies, $700; 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 $8,200. Since the painting department will bring new customers into the store, management expects sales in both the clock and mirror departments to increase by 7%. 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 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
Direct expenses
Total direct expenses
Allocated expenses
Total allocated expenses
Total expenses