Williams Company began operations in January 2019 with two operating (selling) departments and one service (office) department. Its departmental income statements follow. Problem 22-3A Departmental income statements, forecasts P3 Mirror Combined $55,000 34,100 20.900 $185.000 97.800 87,200 Departmental income Statements For Year Ended December 31, 2019 Clock Sales $130.000 Cost of goods sold 63.700 Gross profit 66,300 Direct expenses Sales salaries 20,000 Advertising 1,200 Store supplies used 900 Depreciation-Equipment 1,500 Total direct expenses. 23,600 Allocated expenses 7,020 Utilities expense. 2,600 Share of office department expenses. 10,500 Total allocated expenses. 20,120 Total expenses 43.720 Net income.. $ 22,580 7.000 500 400 300 8.200 27,000 1,700 1,300 1,800 31.800 Rent expense 3,780 1,400 4.500 9,680 17,880 $ 3,020 10.800 4,000 15,000 29,800 61.600 $ 25,600 Chapter 22 Performance Measurement and Re Williams plans to open a third department in January 2020 that will sell paintings. Management predicts that the new department will generate $50,000 in sales with a 55% gross profit margin and will require the following direct expenses: sales salaries, $8,000; advertising, $800, store supplies, $500; and equipment depreciation, $200. It will fit the new department into the current rented space by taking some square foot- age 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 $7,000. 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 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. (Round per- cents to the nearest one-tenth and dollar amounts to the nearest whole dollar.) s). e follows