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	$	140,000		$	115,000		$	255,000
Cost of goods sold		68,600			71,300			139,900
Gross profit		71,400			43,700			115,100
Direct expenses
Sales salaries		21,000			8,200			29,200
Advertising		2,100			400			2,500
Store supplies used		850			350			1,200
DepreciationEquipment		2,200			200			2,400
Total direct expenses		26,150			9,150			35,300
Allocated expenses
Rent expense		7,110			3,600			10,710
Utilities expense		2,500			2,300			4,800
Share of office department expenses		12,500			7,000			19,500
Total allocated expenses		22,110			12,900			35,010
Total expenses		48,260			22,050			70,310
Net income	$	23,140		$	21,650		$	44,790

Williams plans to open a third department in January 2018 that will sell paintings. Management predicts that the new department will generate $60,000 in sales with a 75% gross profit margin and will require the following direct expenses: sales salaries, $8,500; advertising, $1,100; store supplies, $400; and equipment depreciation, $400. 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 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 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.)

Answer is not complete.

WILLIAMS COMPANY
Forecasted Departmental Income Statements
For Year Ended December 31, 2018
	Clock	Mirror	Paintings	Combined
Sales	$156,800	$128,800	$60,000	$345,600
Cost of goods sold	76,832	79,856	15,000	171,688
Gross profit	79,968	48,944	45,000	173,912
Direct expenses
Sales salaries	21,000	8,200	8,500	37,700
Advertising	2,100	400	1,100	3,600
Store supplies used	952	392	400	1,744
Depreciation of equipment	2,200	200	400	2,800
Total direct expenses	26,252	9,192	10,400	45,844
Allocated expenses
Rent expense
Utilities expense	2,500
Share of office dept. expenses
Total allocated expenses	2,500	0	0	0
Total expenses	28,752	9,192	10,400	45,844
Net income	$51,216	$39,752	$34,600	$128,068