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	$	200,000		$	105,000		$	305,000
Cost of goods sold		98,000			65,100			163,100
Gross profit		102,000			39,900			141,900
Direct expenses
Sales salaries		22,500			8,100			30,600
Advertising		1,100			500			1,600
Store supplies used		900			650			1,550
DepreciationEquipment		2,500			900			3,400
Total direct expenses		27,000			10,150			37,150
Allocated expenses
Rent expense		7,110			4,020			11,130
Utilities expense		2,600			2,500			5,100
Share of office department expenses		13,000			8,500			21,500
Total allocated expenses		22,710			15,020			37,730
Total expenses		49,710			25,170			74,880
Net income	$	52,290		$	14,730		$	67,020

Williams plans to open a third department in January 2018 that will sell paintings. Management predicts that the new department will generate $48,000 in sales with a 65% gross profit margin and will require the following direct expenses: sales salaries, $6,500; advertising, $800; store supplies, $400; and equipment depreciation, $700. 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 $7,200. Since the painting department will bring new customers into the store, management expects sales in both the clock and mirror departments to increase by 10%. 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 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 Direct expenses Total direct expenses Allocated expenses Total allocated expenses Total expenses