Williams Company began operations in January 2019 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, 2019
	Clock			Mirror			Combined
Sales	$	250,000		$	95,000		$	345,000
Cost of goods sold		122,500			58,900			181,400
Gross profit		127,500			36,100			163,600
Direct expenses
Sales salaries		21,500			8,600			30,100
Advertising		1,200			400			1,600
Store supplies used		550			350			900
DepreciationEquipment		2,400			300			2,700
Total direct expenses		25,650			9,650			35,300
Allocated expenses
Rent expense		7,090			3,960			11,050
Utilities expense		2,800			1,900			4,700
Share of office department expenses		11,500			3,000			14,500
Total allocated expenses		21,390			8,860			30,250
Total expenses		47,040			18,510			65,550
Net income	$	80,460		$	17,590		$	98,050

Williams plans to open a third department in January 2020 that will sell paintings. Management predicts that the new department will generate $46,000 in sales with a 55% gross profit margin and will require the following direct expenses: sales salaries, $8,000; advertising, $600; store supplies, $400; 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 $7,800. Since the Painting department will bring new customers into the store, management expects sales in both the Clock and Mirror departments to increase by 6%. 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 2020 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 Paintings $ 46,000 Combined $ 411,700 46,000 411,700 Forecasted Departmental Income Statements For Year Ended December 31, 2020 Clock Mirror Sales $ 265,000 $ 100,700 Cost of goods sold 129,850 62,434 Gross profit 135,150 38,266 Direct expenses Sales salaries 21,500 8,600 Advertising 1,200 400 Store supplies used 550 350 Depreciation of equipment 2,400 300 Total direct expenses 25,650 9,650 Allocated expenses Rent expense Utilities expense Share of office dept. expenses Total allocated expenses 0 0 Total expenses 25,650 9,650 Net income 109,500 $ 28,616 0 0 0 0 0 0 $ $ 46,000 $ 411,700