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	$	160,000		$	85,000		$	245,000
Cost of goods sold		78,400			52,700			131,100
Gross profit		81,600			32,300			113,900
Direct expenses
Sales salaries		20,500			7,900			28,400
Advertising		2,300			600			2,900
Store supplies used		700			600			1,300
DepreciationEquipment		2,000			300			2,300
Total direct expenses		25,500			9,400			34,900
Allocated expenses
Rent expense		7,110			3,660			10,770
Utilities expense		2,600			1,600			4,200
Share of office department expenses		11,500			6,000			17,500
Total allocated expenses		21,210			11,260			32,470
Total expenses		46,710			20,660			67,370
Net income	$	34,890		$	11,640		$	46,530

Williams plans to open a third department in January 2020 that will sell paintings. Management predicts that the new department will generate $60,000 in sales with a 85% gross profit margin and will require the following direct expenses: sales salaries, $7,500; advertising, $1,100; store supplies, $300; and equipment depreciation, $600. 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 $7,500. 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 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	0	0	0	0
Direct expenses
Sales salaries	20,500	7,900
Advertising	2,300	600
Store supplies used
Depreciation of equipment	2,000	300
Total direct expenses	24,800	8,800	0	0
Allocated expenses
Rent expense
Utilities expense
Share of office dept. expenses
Total allocated expenses	0	0	0	0
Total expenses	24,800	8,800	0	0
Net income	$(24,800)	$(8,800)	$0	$0