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 $ 230,000 $ 85,000 $315,000 Cost of goods sold 112,700 52,700 165,400 Gross profit 117,300 32,300 149,600 Direct expenses Sales salaries 22,000 8,800 30,800 Advertising 1,400 600 2,000 Store supplies used 650 450 1,100 Depreciation-Iquipment 1,800 900 2,700 Total direct expenses 25,850 10,750 36,600 Allocated expenses Rent expense 7,070 3,720 10,790 Utilities expense 2,700 1,900 4,600 Share of office department expenses 12,000 8.500 20.500 Total allocated expenses 21,770 14,120 35,899 Total expenses 47.620 24,870 72,490 Net income $ 69,680 $ 7,430 $ 77, 110 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, $6,500: advertising, $900; store supplies, $600; and equipment depreciation, $400. 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 $7.300. Since the Painting department will bring new customers into the store, management expects sales in both the clock and Mirror departments to increase by 7%. 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 20 for the three operating (selling) departments and their combined totals. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) 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 0 0 0 0 Sales Cost of goods sold Gross profit Direct expenses Sales salaries Advertising Store supplies used Depreciation of equipment Total direct expenses Allocated expenses Rent expense Utilities expense Share of office dept. expenses Total allocated expenses Total expenses Net income 22,000 1,400 650 1,800 25,850 8,800 600 450 900 10.750 30,800 2,000 1,100 2,700 36,600 61,600 4,000 2,200 5,400 73,200 0 0 0 0 25,850 (25,850) $ 10,750 (10,750) $ 36,600 (36,600) $ 73,200 (73,200) $