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 Por Year Ended December 31, 2019 Clock Mirror Combined Sales $ 180,000 $125,000 $ 305,000 Cost of goods sold 88,200 77,500 165,700 Gross profit 91,800 47,500 139,300 Direct expenses Sales salaries 21,500 8,200 29,700 Advertising 2,000 200 2.200 Store supplies used 950 400 1.350 Depreciation-Equipment 1,400 400 1,800 Total direct expenses 25,850 9,200 35,050 Allocated expenses Rent expense 7.100 3.600 10.700 Utilities expense 3,000 1,500 4,500 Share of office department expenses 10,500 4.000 14.500 Total allocated expenses 20,609 9,100 29,700 Total expenses 46.454 18.300 64.750 Net income $ 45,350 $ 29,200 $ 74,550 Williams plans to open a third department in January 2020 that will sell paintings. Management predicts that the new department will generate $49,000 in sales with a 75% gross profit margin and will require the following direct expenses: sales salaries, $8,000 advertising. $1,100; store supplies, $700; and equipment depreciation, $300. 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 for 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 $8,000. Since the Painting department will bring new customers into the store, management expects sales in both the Clock and Mirror departments to increase by 13%. 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 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 Advertising 8.2001 200 21,500 2,000 [ 1,400 24,900 Store supplies used Depreciation of equipment Total direct expenses Allocated expenses Rent expense + 400 8,800 Utilities expense Share of office dept. expenses Total allocated expenses Total expenses Net income 0 24,900 (24,900) 0 8,800 (8.800) $ S