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	$	170,000		$	105,000		$	275,000
Cost of goods sold		83,300			65,100			148,400
Gross profit		86,700			39,900			126,600
Direct expenses
Sales salaries		20,000			8,600			28,600
Advertising		2,000			500			2,500
Store supplies used		900			250			1,150
DepreciationEquipment		1,500			900			2,400
Total direct expenses		24,400			10,250			34,650
Allocated expenses
Rent expense		7,080			4,020			11,100
Utilities expense		3,000			1,700			4,700
Share of office department expenses		10,000			6,000			16,000
Total allocated expenses		20,080			11,720			31,800
Total expenses		44,480			21,970			66,450
Net income	$	42,220		$	17,930		$	60,150

Williams plans to open a third department in January 2016 that will sell paintings. Management predicts that the new department will generate $48,000 in sales with a 55% gross profit margin and will require the following direct expenses: sales salaries, $9,000; advertising, $900; store supplies, $800; and equipment depreciation, $700. 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 $7,700. Since the painting department will bring new customers into the store, management expects sales in both the clock and mirror departments to increase by 9%. 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.)

6. value: 4.00 points 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 $170,000 $105,000 $275,000 Cost of goods sold 83,300 65,100 148,400 86,700 39,900 126,600 Gross profit Direct expenses Sales salaries Advertising Store supplies used Depreciation- Equipment 20,000 2,000 900 1,500 8,600 500 250 28,600 2,500 1,150 2,400 900 24,400 10,250 34,650 Total direct expenses Allocated expenses Rent expense Utilities expense Share of office department expenses 7,080 3,000 10,000 4,020 1,700 6,000 11,100 4,700 16,000 Total allocated expenses 20,080 11,720 31,800 Total expenses 44,480 21,970 66,450 Net income $ 42,220 $ 17,930 $ 60,150 Williams plans to open a third department in January 2016 that will sell paintings. Management predicts that the new department will generate $48,000 in sales with a 55% gross profit margin and will require the following direct expenses: sales salaries, $9,000; advertising, $900; store supplies, $800; and equipment depreciation, $700. 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 $7,700. Since the painting department will bring new customers into the store, management expects sales in both the clock and mirror departments to increase by 9%. 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 0000 Direct expenses Total direct expenses Allocated expenses 0 Total allocated expenses Total expenses 0 $ 0 0 $ 0 0 $ 0 0 $ 0