Williams Company began operations in January 2017 with two operating (selling) departments and one service (office) department. Its departmental income statements follow.

Williams plans to open a third department in January 2018 that will sell paintings. Management predicts that the new department will generate $49,000 in sales with a 65% gross profit margin and will require the following direct expenses: sales salaries, $6,000; advertising, $900; store supplies, $900; 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 $7,100. 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 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 Departmental Income Statements For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Direct expenses Clock Mirror Combined $ 250,000 $ 85,000 S 335,000 122,500 52,700 175,200 127,500 32,300 159,800 Sales salaries Advertising Store supplies used Depreciation-Equipment Total direct expenses 21,500 8,000 500 500 400 9,400 1,600 750 2,300 26,150 29,500 2,100 1,250 2,700 35,550 Allocated expenses 4,020 11,120 5,400 20,000 36, 520 72,070 $ 80,050 $ 7,680 $ 87,730 7,100 Rent expense Utilities expense Share of office department expenses Total allocated expenses 3,200 2,200 9,000 21,300 15,220 47,450 24,620 11,000 Total expenses Net income