Williams Company began operations in January 2019 with two operating {selling} departments and one service [office] departmenL Its departmental income statements follow. WILLIAMS COMPANY Departmental Income Statements For Year Ended December 31, 2019 Clock Mirror Combined Sales $140,000 $ 60,000 $200,000 Cost of goods sold 53,500 31200 105:3\") Gross profit 11,400 22,800 94,200 Direct expenses Sales salaries 20,100 7,000 2?,100 Advertising 1, 220 550 1, 770 Store supplies used 950 450 1, 400 DepreciationEquipment l, 520 350 1, 870 Total direct expenses 23,790 8,350 32,140 Allocated expenses Rent expense L020 3,?80 10,800 Utilities expense 3,250 1,?50 5,000 Share of office department expenses 10,500 4,500 15,000 Total allocated expenses 20,770 10,030 30,800 Total expenses 44,560 18,380 62,940 Net income 3 26,840 $ 4,420 $ 31,260 Williams plans to open a third department in January 2020 that will sell paintings. Management predicts that the new department will generate $53,000 in sales with a 55% gross prot margin and will require the following direct expenses: sales salaries, $8,100; advertising, $850; store supplies, $550; and equipment depreciation, $250. 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 ll onefth of the space presently used by the Clock department and one-fourth used by the Mirror departmenL 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 ofce department expenses to the operating departments in proportion to their sales. It expects the Painting department to increase total office department expenses by $9,000. Since the Painting department will bring new customers into the store, management expects sales in both the Clock and Mirror departments to increase by 8%. No changes for those departments' gross prot 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 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 Forecasted Departmental Income Statements For Year Ended December 31, 2020 Clock Mirror Paintings Combined Sales Cost of goods sold Gross profit Direct expenses Sales salaries 20,100 7,000 8,100 Store supplies used Advertising 1,220 550 850 Depreciation of equipment 1,520 350 1,870 Total direct expenses 22,840 7,900 10,820 Allocated expenses Rent expense Utilities expense Share of office dept. expenses Total allocated expenses 0 0 Total expenses 22,840 7,900 10,820 Net income (22,840) $ (7,900) $ (10,820)