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 $ 160,000 95,000 255,000 58,900 Sales Cost of qoods sold 78,400 137,300 Gross profit Direct expenses Sales salaries Advertising Store supplies used 81,600 117,700 36,100 28,200 2,100 1,200 20,000 1,500 8,200 600 650 550 Depreciation-Equipment Total direct expenses Allocated expenses 1,500 900 2,400 33,900 23,650 10,250 Rent expense 7,040 3,900 10,940 4,600 16,500 Utilities expense 2,800 1,800 Share of office department expenses Total allocated expenses 10,000 6,500 12,200 22,450 19,840 32,040 43,490 65,940 Total expenses 38,110 $ 13,650 $ 51,760 Net income 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, $7,000; advertising, $1,000; store supplies, $600; and equipment depreciation, $600. 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 $7,800. Since the painting department will bring new customers into the store, management expects sales in both the clock and mirror departments to increase by 11%. 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 Direct expenses Total direct expenses Allocated expenses Total allocated expenses Total expenses