Williams Company began operations in January 2017 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, 2017 Clock Mirror Combined Sales $ 220,000 $115,800 $ 335, eee Cost of goods sold 107,8ee7 1,300 179, 180 Gross profit 112,200 43,700 155,900 Direct expenses Sales salaries 21,eee 7,400 28,480 Advertising 2,2ee 3ee 2, 5ee Store supplies used 55e 95e Depreciation-Equipment 2, see 300 2,Bee Total direct expenses 26,250 8,400 34,650 Allocated expenses Rent expense 7,100 3,480 10, 580 Utilities expense 2,900 1,600 4. See 11,5ee 6,500 18. eee Share of office department expenses 21,500 11,580 33,080 Total allocated expenses 47,75 19,980 67,730 Total expenses $ 54,450 $ 23,720 $ 88,170 Net income 400 487 o search YYN Williams plans to open a third department in January 2018 that will sell paintings. Management predicts that the new department will generate $52,000 in sales with a 65% gross profit margin and will require the following direct expenses: sales salaries, $8,500; advertising, $800; store supplies, $500, and equipment depreciation, $500. It will fit the new department into the current rented space by taking some square footage 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 $8,500. Since the painting department will bring new customers into the store, management expects sales in both the clock and mirror departments to increase by 12%. 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 2018 for the three operating (selling) departments and their combined totals (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) WILLIAMS COMPANY Forecasted Departmental Income Statements For Year Ended December 31, 2018 Clock Mirror Paintings Combined Help Save & Sales Combined $ 427,200 427,200 WILLIAMS COMPANY Forecasted Departmental Income Statements For Year Ended December 31, 2018 Clock Mirror Paintings $ 246,400 $ 128,800 $ 52,000 Cost of goods sold Gross profit 246,400 128,800 52,000 Direct expenses Sales salaries 21,000 7,400 8,500 Advertising 2,200 300 800 Store supplies used 6161 500 Depreciation of equipment 300 5001 Total direct expenses 23,816 8 ,448 10,300 Allocated expenses 5,680 2,610 Rent expense 2,290 9707 Utilities expense Share of office dept. expenses 5,680 2,610 3,260 Total allocated expenses 36,900 3,300 4481 40,200 10,580 4,500 15,080 21,000 2,200 36,900 3,300 616 7,400 300 4481 3001 8,448 8,500 800 500 500 10,300 23,816 40,200 Direct expenses Sales salaries Advertising Store supplies used Depreciation of equipment Total direct expenses Allocated expenses Rent expense Utilities expense Share of office dept. expenses Total allocated expenses Total expenses Net income 5,680 2,6101 2,2907 10,580 4,500 970 5,680 29,496 216,904 2.610 11,058 117,742 3,260 13,560 38,440 15,080 55,280 371,920 $ $ $ $