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 Mirror Combined $240,000 $115,000 $ 355,000 117,60071,300188,900 122,400 43,700 166,100 Clock Sales Cost of goods sold Gross profit Direct expenses Sales salaries Advertising Store supplies used Depreciation-Equipment Total direct expenses 21,500 2,200 700 1,300 25,700 7,900 300 550 800 9,550 29,400 2,500 1,250 2,100 35,250 Allocated expenses 10,990 4,200 22,000 37,190 72,440 17,990 $ 93,660 3,960 1,700 10,500 16,160 25,710 Rent expense 7,030 2,500 11,500 21,030 Utilities expense Share of office department expenses Total allocated expenses Total expenses 46,73023 Net income $ 75,670