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 170,000 $105,000 275,000 Sales 83,300 Cost of goods sold 65,100 148,400 Gross profit 86,700 39,900 126.600 Direct expenses 19,500 Sales salaries 8,100 27,600 Advertising 1,100 400 1,500 Store supplies used 550 300 850 2,300 Depreciation Equipment 500 2,800 23,450 Total direct expenses 9,300 32,750 Allocated expenses Rent expense 7,110 3,780 10,890 2,800 Utilities expense 1,500 4,300 Share of office department expenses 11,500 5,500 17,000 Total allocated expenses 21,410 10,780 32,190 Total expenses 44,860 20,080 64,940 41,840 19,820 61,660 Net income